Michel Louboutin, co-founder and Chief Operating Officer of Expert Petroleum, while in Lviv, answered the questions of our correspondent about the implementation of the PES project in West Ukrainian fields.

Expert Petroleum has already established Expert Petroleum Ukraine LLC to work in Ukraine. Michel Louboutin is going to become the head of the company shortly after the registration of the right to work and permanent residence in Ukraine. He plans to settle in Ukraine, learn the Ukrainian language and prove that his business, i.e. stimulation of hydrocarbon production at depleted fields, can significantly increase the amount of gas produced from the Stryi oil and gas fields of Lvivgasvydobuvannya. It is an increase in flow rates that is a key condition of the PEC, which was signed on April 17, 2020, as a result of Expert Petroleum winning the tender held by Naftogaz.

The coronavirus situation has postponed the commencement of practical work for six weeks. Nevertheless, Michel Louboutin and his team have already got acquainted with facilities and personnel at the Stryi sites. According to preliminary agreement, Expert Petroleum Ukraine will take over 13 fields. This means that the vast majority of personnel who works there will be employed by the company.

For most people, their uniform will be the only thing to change…

– Employees at Stryi oil and gas fields are afraid of the changes you are offering them. Mostly because they know little about what awaits them. Could you please explain to them what is happening?

– When we signed the contract, we knew that it was very important for us to come here in Lviv region as soon as possible and talk to people. With the assistance of Naftogaz, we received exclusive permission to cross the border, spent two weeks in quarantine at a hotel in Kyiv – and here we are!

People should not be afraid. We will hire employees from the Stryi field, if they want, because we believe that it is impossible to work effectively if you do not coordinate the people who work for you. As an employer, the company knows how to improve their skills, how to train them and make them develop, and how to identify their strengths and potential.

The benefits package for our future employees will be similar or at least no worse than that offered by Ukrgasvydobuvannya. We already met with the leader of the Lvivgasvydobuvannya trade union and assured him that the uniform would be the only thing to change for most people.

We will talk to each employee personally. We will listen to people's expectations, review their benefits package, what we can offer, how we can interest them so that they will be willing to join our company. According to the PEC, these specialists are not obliged to switch to Expert Petroleum Ukraine. Transfer of volunteers will be organized according to standard open-term employment contracts, which are practiced under Ukrainian labor legislation. We are not talking about short-term contracts.

– You had a conversation with the head of the trade union. Is a trade association provided in your structure?

– We work closely with trade unions to ensure employee protection. Employees within Expert Petroleum Ukraine can create their own trade union organization.

Why Stryi fields?

– Did you have an opportunity to choose objects for investment? If yes, why did you opt for Lvivgasvydobuvannya?

– Some historical moments. I first met with the representatives of Ukrgasvydobuvannya four years ago. Back then I told how we are doing our business in Romania. After that, the management of Ukrgasvydobuvannya came to this country, inspected our facilities, and talked to our partner OMV Petrom (Petrom was a state-owned oil and gas producer, which was subsequently bought by Austrian OMV – ed.). Ukrgasvydobuvannya's managers liked the idea of the production enhancement contract (PEC) and it was decided to introduce it here in Ukraine.

We did not choose Stryi oil and gas fields. It was Ukrgasvydobuvannya that analyzed its fields and offered those where it considered it expedient to implement this project.

Adhering to the principle of transparency, Naftogaz held a tender to select a contractor to work under the terms of PEC. Initially, there were about 15 interested companies, with the ultimate number of qualifiers - 4. Finally, there were only two companies to choose from. We were chosen according to the bidding criteria defined by Ukrgasvydobuvannya.

– Why do you think the Romanian experience should be implemented here?

– We made the production facilities in Romania - giant structural units engaged in both gas and oil production - the management of which was transferred to us, more efficient, and we modernized them. They currently produce low emissions, they are environmentally friendly and impeccable in terms of occupational safety and health. And, of course, we increased production.

I was here in Stryi three years ago and saw all these production facilities. Since then, their condition has improved significantly. The local specialists are responsible and hardworking. Here they have high standards for equipment and new facilities.

 

– Do you plan to conduct geological exploration, 3D seismic surveying, deep drilling using innovative technology that is already used by commercial gas producers in West Ukraine? I mean cluster, horizontal, directional drilling…

– It took us a lot of time to analyze the information about reservoirs available at the bidding stage in order to determine what exactly we can do, what methods to use and innovations to implement in order to increase production. We are still collecting data.

We are currently drawing up field development plans from the date of transfer to the end of next year. In addition, we plan seismic and other surveys, we will apply new technologies, and we will be spudding-in new wells in the coming years.

We will be using transparent procedures for purchases of subcontractors' services. In the first place, we will be attracting local competitors, if any, with expertise and quality we need.

We continue to study the market, and we already have a list of potential subcontractors we can attract in certain categories of products, equipment and services both in Ukraine and in the near abroad. We have already met with many potential contractors and there are more to come.

– Will you purchase new special permits for subsoil development from bids?

– No, our company is a service contractor that specializes in enhancing production from brown fields. We are a success precisely because we stick to our niche in the market and we do what we know very well. We have no desire to have special permits for either subsoil development or geological exploration of subsoil.

I will be the only foreigner to work in Lviv

– Who are your professionals, people who will implement your plans?

– We have a very strong team of engineers in Bucharest, Romania. We jointly drew up development plans for your fields for tender. With their help, we will be hiring local personnel, technical specialists and engineers. However, since Expert Petroleum Ukraine has already been established, we will no longer need support from the Romanian office that much in the future.

– What experience do your specialists have?

– For example, our technical director Richard Bilyi from Poltava. He worked for JV Poltava Gas and Oil Company for 22 years and has extensive experience. Here he will be responsible for the technical part.

We have a new financial officer, she is from Lviv. Moreover, we already have a HSE manager. I will be the only foreigner to work in Lviv, all others are Ukrainians.

The company welcomes initiatives and proposals. Everyone's point of view will be taken into account at any level.

Interviewed by Svitlana Khytrova