Ukraine and its role at European Gas market

Ukraine plays an important role at the European gas market.

  • - In 2016-2017 natural gas production in Ukraine has steadily grown after a prolonged decline.
  • - Ukraine remains main transit avenue of Russian gas to EU.
  • - Ukraine is #1 in Europe by capacity of underground gas storages
  • - Ukraine is #2 in proven natural gas reserves
  • - Ukraine is #4 by gas production volume in Europe

About UGV

JSC Ukrgasvydobuvannya is the largest gas production company in Central and Eastern Europe. In Ukraine, it is a major player specializing in natural gas and gas condensate production. 

JSC Ukrgasvydobuvannya is a 100%-owned subsidiary of NJSC Naftogaz of Ukraine. In 2018 the Company provided the natural gas production at the level of 15.496 bcm, which is a record for the last 25 years and exceeds the annual production for the last year by 246 mcm.

The results of 2018 were achieved through the implementation of a campaign to increase the natural gas production in existing deposits:

  • - 173 GPD operations have been performed, thanks to which the company produced more than 470 mcm;
  • - 225 well repair operations have been carried out, the additional effect of which exceeds 300 mcm of natural gas;
  • - 729 coil-tubing operations have been conducted, the additional effect of which exceeds 330 mcm of natural gas;
  • - the volume of the 3D seismic survey has increased by 3.5 times up to 1800 square meters;
  • - 5 new deposits with more than 1.5 bcm of gas and resources more than 7 bcm have been opened;
  • - the drilling meterage by UkrBurGas Drilling Division has been increased to 245.9 km of penetration rate and the drilling speed is up to 424 m/month;
  • - external drilling contractors, the drilling meterage of which was 67.3 km of penetration rate has been involved;
  • - since the beginning of this year, 97 wells have been drilled and 69 new wells have been brought into production;
  • - in December, the Company has secured the record average production per day up to 43.7 million cm, that is almost 1.3 mcm more than the actual performance for the same period in 2017;
  • - despite the production decrease within 1 bcm in existing deposits, the company has managed to compensate for the reduction and additionally produced 1.1 bcm of gas.

JSC Ukrgasvydobuvannya develops the gas, oil and oil and gas condensate deposits in Kharkiv, Poltava, Sumy, Donetsk, Luhansk, Dnipropetrovsk, Lviv, Ivano-Frankivsk, Zakarpattia, Chernivtsi and Volyn regions. The Company’s geological exploration of new hydrocarbon deposits is carried out in the Dniprovsko-Donetska cavity and the Carpathian Mountains.

The Company incorporates of 11 branches, including: 3 gas production divisions, drilling division, gas and gas condensate processing division, as well as UGV-Service.

The branch of JSC Ukrgasvydobuvannya is UkrBurGas Drilling Division, the largest drilling enterprise in Ukraine. Four drilling departments, technological transport and special equipment departments are the part of the branch and carry out a full range of well construction operations. 

JSC Ukrgasvydobuvannya owns a chain of 19 gasoline filling stations in the Kharkiv region. In 2018, the total sales amounted to 524.3 thousand tons, including 325.5 thousand tons of light petroleum products and 162.3 thousand tons of LPG.