Ukraine and its role at European Gas market

Ukraine plays an important role at the European gas market.

  • - 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 the company

Ukrgasvydobuvannya JSC is the largest gas production company in Central and Eastern Europe. In Ukraine, it is a major player producing 70% of natural gas and specializing in gas condensate production. 

Ukrgasvydobuvannya JSC is a 100%-owned subsidiary of Naftogaz of Ukraine NJSC. In 2021 the Company provided 12.93 bcm sales gas production, which was given to the public and DHC (district heating company). Ukrgasvydobuvannya JSC incorporates the assets of different Naftogaz Group divisions. Naftogaz Exploration and Production Division includes 3 gas production divisions - Lvivgasvydobuvannya, Poltavagasvydobuvannya, Shebelynkagasvydobuvannya, and UkrNDIGas Scientific Research Institute. Naftogaz Technical Division comprises of UkrBurGas Drilling Division service branches, UGV-Service, Ukrgazpromgeofizika, LIKVO ERS and Ukrgazspetsbudmontazh. Naftogaz Nafta Division includes Gas and Gas Condensate Processing Department.

Key results of 2020:

  • — Improved production safety, 0 fatalities in 2020;
  • 13.45 bcm of sales gas was produced (2% more than the production target and 1% less than 2019 indicator);
  • 41 new wells were commissioned. The average flow rate from new wells increased by 14% as compared to 2019;
  • — Two new fields - Zhemchuzhne and Pivnichno-Kuzmychinvske - were discovered;
  • — Modernization started for key surface facilities, including  Chervonodonetska, Yablunivska, Khrestyshchenska BCS, with total investments of USD 125 million;
  • — Completion of drilling deep well No. 888 at Shebelynka field. Testing and completion procedures underway;
  • — Beginning of partnership with the Expert Petroleum international company to intensify production at 13 depleted fields in Western Ukraine (within PEC framework);
  • — Establishment of unique 3D Field Modeling Center in Ukraine; it will improve the efficiency of planning and hydrocarbon deposits development.

Ukrgasvydobuvannya JSC carries out development of gas, oil and oil and gas condensate fields in Kharkiv, Poltava, Sumy, Donetsk, Luhansk, Dnipropetrovsk, Lviv, Ivano-Frankivsk, Zakarpattia, Chernivtsi and Volyn regions. Company performes HC exploration in the Dnieper-Donets basin and the Carpathian region.

In 2020, the Company obtained new resource opportunities, namely, offshore area, Yuzivska area and 4 PSA areas. It also launched a new strategy for the development of Naftogaz resource base that aims to double gas reserves over the next 10 years.

In 2020, 3D Field Modeling & Visualization Center was established on the basis of the UkrNDIGas Scientific Research Institute. It is a state-of-the-art center of competence, unique for Ukraine's oil and gas industry. Center's experts have created twenty-five 3D field models. They are working on 5 new 3D models for Naftogaz key fields.

UkrBurGas Drilling Division, a branch of Ukrgasvydobuvannya JSC, the largest drilling company in Ukraine. Four drilling departments, service vehicles and special equipment departments are the part of the branch and carry out a full range of well construction operations. 

Ukrgasvydobuvannya JSC owns a chain of 19 gasoline filling stations in Kharkiv region. In 2020, the total sales amounted to 446 thousand tons, including 140.5 thousand tons of light petroleum products, 75 thousand tons of diesel fuel and 144 thousand tons of LPG.