JSC Ukrgasvydobuvannya has completed the first competition round for contract signing to increase the production in two groups (clusters) of gas fields in the Western region. After considering the received offers, it was decided to hold the commercial negotiations with two participants:  Romanian Expert Petroleum Solutions SRL and Chinese consortium of Xinjiang Beiken Energy Engineering and Zhongshi Shengli Oil Engineering”.

"Our goal is to increase the commercial gas volumes, but most gas fields of Ukrgasvydobuvannya are depleted, this is particularly so with the western region. That is why we decided to involve partners and started the PEC competition. Additional investments, technical and managerial professionals, and the latest intensification technologies will make it possible to increase the extraction efficiency of residual reserves of depleted fields, which are still considerable," said first deputy chairman of Ukrgasvydobuvannya board Oleksandr Romanyuk.

As Mr Romanyuk noted that the project attracted interest among the market players, in the first round, four well-known international companies qualified. During the competition, many companies were eager to join. In the future, Ukrgasvydobuvannya will involve such companies in its projects. 

The Romanian company and the Chinese consortium are well experienced, especially in such contract implementation. Within the next few months, Ukrgasvydobuvannya specialists will discuss the future production and investment programs with 2 participants, with a particular focus on safety and environment issues, after which the company will determine the winner for each field group. Works on the fields are planned to begin in the first half of 2020.

It should be reminded that at the beginning of April, Ukrgasvydobuvannya re-launched the PEC project to increase the production in the fields in Western Ukraine. According to the results, We plan to sign one or more contracts to increase the output in groups (clusters) of gas fields. According to the agreements, the existing UGV production infrastructure will be transferred to the partners to implement the investment program to increase natural gas production.

Additional information

Expert Petroleum was founded in 2005, aiming to develop and improve within the PEC project implementation to increase the production for Romanian Romgaz. In 2016, the company received a contract to increase the output with the Romanian company OMV Petrom. AS of today, the company is operating in Ukraine, India, Angola, Kazakhstan and North Africa.

Chinese consortium includes Xinjiang Beiken Energy Engineering and Zhongshi Shengli Oil Engineering.

Xinjiang Beiken was founded in 1995. Except for China, it provides the services in Iran, Iraq, Kazakhstan, Indonesia and several other countries. The company has 30 drilling rigs. In 2017, it started working in Ukraine, providing the well drilling services.

Shengli is a subsidiary of Chinese integrated energy and chemical company Sinopec. It is the largest oil producer among all its subsidiaries. At the end of 2011, Sinopec launched five exploration and production campaigns at the Shengli oil field, Tarim basin, Ordos basin, Sichuan basin and the unconventional oil and gas field.