Ukrgasvydobuvannya JSC has announced the start of the procedure for procurement of new workover rigs under agreements executed in 2020 between the Naftogaz Group, the Ministry of Finance of Ukraine and the European Bank for Reconstruction and Development (EBRD).
The tender provides for procurement of 5 125 tons workover rigs and 5 more 180 tons workover rigs to perform operation at depths over 5 km.
"In 2020, Ukrgasvydobuvannya purchased 5 new rigs, thanks to which we restore dozens of wells a year. But in order to increase production, we need more of our own equipment. During the full-scale war, when many contractors refused to provide their services in Ukraine, this need became even more urgent. The new rigs will increase the number of operations on wells, primarily in depleted fields. Taking into account the enhanced performance of these rigs, the employees of our service division will be able to perform the required operations at considerable depths and in complicated geological conditions. This means increasing the efficiency of extracting residual gas reserves," Oleg Tolmachov, Ukrgasvydobuvannya Acting Director General, said.
On January 9th the Company published the announcement on procurement on the E-Procurement Portal (ECEPP), the official EBRD`s tender platform. The announcement can be viewed by following the link: https://ecepp.ebrd.com/delta/viewNotice.html?displayNoticeId=17616269
The procurement procedure is carried out in accordance with the EBRD's procurement principles and rules. Bids are accepted on the ECEPP platform until 14:00 (London time) of March 10, 2023.
As reported, under the loan agreement concluded in 2020, EBRD will allocate the funds in the amount of EURO 51.85 million for Ukrgasvydobuvannya JSC workover rigs fleet renewal, as well as for the introduction of energy-efficient technology in one of the company's production facilities.
The loan is provided in two tranches – EURO 36.4 million and EURO 15.45 million each. The maturity term of the first tranche is 9 years, the maturity term of the second tranche is 15 years. The floating interest rate is six-month EURIBOR + 1 percent per annum.