Despite the crisis conditions in global and Ukrainian energy markets, Ukrgasvydobuvannya, which is a member of the Naftogaz Group, managed to maintain commercial gas production rates at the level recorded during the same period of the previous year with deviations within the range of minus 0.4%.

According to recent reports, in January-March 2020, JSC Ukrgasvydobuvannya production amounted to 3.4 billion cubic meters of natural gas, which was supplied to the population and district heating providers.

“Today, the production industry is having a difficult time. First of all, oil and gas prices remain at record lows due to a dramatic reduction in demand in local and international markets. For consumers, this is good news. For producers, however, this means a reduction in income and, as a consequence, a curtailment of investments. Secondly, due to the coronavirus pandemic, contractors are not always able to adhere to the contractual terms of operation and supplies. We will experience the negative impact of these factors on production performance in the next quarter,” said Oleksandr Romanyuk, First Deputy Director General.  “We are actively working to minimize the impact of the crisis. The service contract we concluded with the international company Expert Petroleum allows us to attract foreign investment and benefit from enhanced depletion fields management practices as early as this year.”

Commercial gas production rates are the result of the production program:

• − 14 wells have been put into operation;
• − 158 coiled tubing operations completed;
• − 29 hydraulic fracturing operations completed;
• − 30 workover operations completed.

The company continues to modernize its ground infrastructure. In particular, projects are planned to reequip existing and build new gas treatment units. The company has an ongoing sidetracking project with Halliburton to restore wells from an inoperative fund.