The Upstream Division of Naftogaz continues to maintain hydrocarbon production performance even under limited financial resources due to falling gas prices and the coronavirus pandemic. In the first half of 2020, the company produced 6.76 bcm of natural gas which was supplied to the population and district heating providers.
The year-over-year variance is 0.8% or 53 mcm of natural gas, whilst the company's average gas selling price decreased by 47% compared to the first half of 2019.
“We are changing approaches to project management in the field of gas exploration and production. Through this process, we actually managed to maintain production figures in difficult times, while other producers are drastically reducing their operation plans and programs. Our team put 9 high-performance wells on production during the first half of 2020. In some areas, where we can surely obtain the maximum result, the number of production operations even increased,” said Oleksandr Romanyuk, Director of the Upstream Division of Naftogaz. – “We think not only of today, but also long-term. Therefore, we are currently developing a medium-term gas exploration and production strategy subject to new market factors. Among its major objectives is to build up the hydrocarbon resource base. This actually means the creation of a new foundation for the development of the industry.”
Marketable gas production figures are the result of the successful fulfillment of the production program:
- • drilling of 20 wells completed;
- • 347 coiled tubing operations completed;
- • 53 hydraulic fracturing operations completed;
- • 62 workover operations completed;
- • 118 km of new flowlines and 36 km of gas pipelines were built;
- • 3 booster compressor stations were put into operation;
- • 2 gas treatment units were reconstructed.