Ukrgasvydobuvannya, together with experts, is looking for optimal solutions for producing Ukrainian gas in war conditions

Jul 29, 2022 | Category: Official
Ukrgasvydobuvannya, together with experts, is looking for optimal solutions for producing Ukrainian gas in war conditions

On July 27, Ukrgasvydobuvannya held a meeting of the Expert Council for the first time during a full-scale war. Experienced scientists and practitioners reviewed measures to minimise gas production losses due to military operations, and necessary changes in strategic priorities to develop the Company's activities.

A full-scale war resulted in Ukrgasvydobuvannya's not only losing production from a significant number of production wells due to destruction, occupation, or military operations. The Company also lost a lot of equipment, machienry, and hundreds of qualified specialists who were forced to change their usual work to protect the country with weapons in their hands.

Moreover, the aggression affected the supply of equipment, materials, and services. Foreign counterparts, and often Ukrainian ones, were not ready to work in the new conditions. Some due to physical danger. Others due to logistics issues. For the third, the continuation of work has become unprofitable.

Ukrgasvydobuvannya has to look for alternative solutions that not only make continued hydrocarbon production possible in such conditions, but also do so with minimal losses. For a comprehensive analysis of the ideas, the Company attracted members of the Expert Council – 11 reputable scientists and practitioners of the petroleum industry.

"In the first half of the year, Ukrgasvydobuvannya managed to produce Ukrainian gas in volumes close to last year's figures. However, it is becoming increasingly difficult to maintain such results. Therefore, we strive to use every opportunity and idea to reduce the adverse consequences," Oleksandr Romanyuk, acting General Director of Ukrgasvydobuvannya, said.

Rapid and efficient resetting of supply chains, as noted at the meeting, often rests on the system of public procurement of goods and services, which makes them long-term and not always optimal in terms of quality. Even during the war, Ukrgasvydobuvannya continues to lose hundreds of millions of cubic meters of gas for this reason.

To meet 2022 goals, immediate regulatory changes that will make purchases quick and easy are needed. By all means, maintaining modern transparency and control mechanisms. This was stated by Ilya Rybchich, perennial ex-head of Ukrgasvydobuvannya, a member of the Expert Council.

"It is critically important for Ukrgasvydobuvannya to have a clear management structure with a clear distribution of responsibilities for quick decision-making. An equally important issue is the possibility of prompt delivery of equipment and materials. We are talking about Ukraine's energy security, so the government and the Verkhovna Rada must find the right solutions," the expert said.

A full-scale war is forcing Naftogaz and Ukrgasvydobuvannya to change their focus in their strategic, long-term projects. After all, the promising Black Sea shelf, the Yuzivska area and several large areas received under the PSA in the east of the country, which could significantly increase the Company's resource base, are now under occupation or in the epicenter of hostilities.

"We continue preparations in the framework of all strategic projects launched earlier, both in the east and in the south of Ukraine. But considering that the company temporarily does not have access to certain areas, we are increasing operational activity on prospects in the west of Ukraine, which also have high potential," Maksym Vityk, Director of Geology and Strategic Projects at Ukrgasvydobuvannya said.

Great emphasis is still placed on improving the efficiency of hydrocarbon production at the mature fields of Ukrgasvydobuvannya. In addition to the usual stimulation methods, the company plans horizontal drilling projects. The design of several such wells has already been performed, and their construction is planned for 2022.

"Having received gas from such wells and proved the prospects of this direction, we will be able to attract foreign partners. Our company does not stop negotiations on joint projects even during the war," Oleh Tolmachev, Director of the Exploration and Production Division of the Naftogaz Group said. - Europe needs gas, and today it is a matter of survival. Ukraine can help resolve this issue by developing its gas production. Every gas molecule that Ukraine will not consume can be consumed by Europe."

The Expert Council called the need to optimise the operation of the Ukrainian Gas Transmission System in line with current realities another urgent issue. Many decades ago, it was built and operated primarily based on the needs of Russian gas transit. Now experts see the feasibility of changing the approach.

"The real threat of stopping gas transit through Ukraine is now higher than ever. Therefore, today it is necessary to seriously adapt the gas gathering and transmission system for Ukrainian production. All the years of its existence, it has served Russian gas, now it is time to change this and put the Ukrainian gas producer first," Yuriy Fesenko, a member of the Expert Council, added.

Attracting Ukrainian specialised companies, scientists, and specialists is one of the priorities that Ukrgasvydobuvannya will follow to implement its short- and long-term plans. Moreover, as Maksym Vityk noted, the company already employs students and graduates to educate a new generation of Ukrainian gas producers.

"It is very important that Ukrainian specialists are involved in the planning and implementation of new projects that require new technologies and the participation of foreign experts. To do this, appropriate training and advanced training programs should be in place. And I greet Ukrgasvydobuvannya's understanding of this," Vitaliy Vitryk, a member of the Company's Expert Council, responded to Ukrgasvydobuvannya's plans.