Amid COVID-19 pandemic and economic downturn, JSC Ukrgasvydobuvannya's (Naftogaz Group) net profit amounted to UAH 4.95 billion in 2020, with the operating profit amounting to UAH 7.3 billion.  The company continues to invest in stabilizing gas production at "old" fields and new projects to increase the resource base.

For Q4 2020, as compared to the first 9 months of 2020, the company's net profit increased almost threefold - from UAH 1.77 billion to UAH 4.95 billion.

“The positive economy of our gas E&P activities provides a resource for further investment in the development of our assets, as well as a source of significant tax payments to the budgets of all levels and financing socially important projects. Although last year due to the situation on the gas market, economic crisis and pandemic, our capital investments decreased almost one and a half times - to UAH 16.6 billion, we managed to maintain our planned gas production targets, almost at the level of the previous year. At the same time, we have retained the status as one of the largest contributors to the state budget, as well as as a reliable partner for more than 200 communities all over Ukraine, ” Olena Kobets, Director General of Ukrgasvydobuvannya JSC, said.

In 2021, our investment priority will be to minimize production decline in "mature" fields, which are already depleted by 70-80% and in parallel to research and develop new gas fields.

At the same time, the Naftogaz Group has already started implementing prospective projects within the Strategy for Increasing the Resource Base. This includes researching new large-scale areas in the Black Sea, Yuzivka area, as well as 4 blocks within the framework of PSAs. The goal is to double Naftogaz gas reserves over the next 5 years.

As previously reported, in accordance with an independent study prepared by the methodology of KPMG international consulting company in Ukraine, the implementation of the existing portfolio of the projects of the Ukrainian gas producing companies can lead to an increase in gas production to 30 bcm of gas per year in 10 years, which will allow to completely abandon gas import. Such an increase in production will lead to the creation of 22 thousand new jobs in the sector, an increase in budget contributions by UAH 145 billion and GDP growth by UAH 345 billion.