NJSC Naftogaz of Ukraine and JSC Ukrgasvydobuvannya (UGV) have signed a Memorandum about Mutual Understanding  with Halliburton Ukraine LLC (Halliburton) to further enhance their cooperation in providing oil and gas services for the development of hydrocarbon fields in Ukraine.

The document was signed by Naftogaz CEO Andriy Kobolyev, Member of the Board, Acting Chairman of the Board of UGV Andrew Favorov, and Joe Rainey, President Eastern Hemisphere at Halliburton, Naftogaz's press service said.

Within the framework of Memorandum, UGV and Halliburton expect application of advanced world technologies in the field of drilling, workover operations, cementing, hydraulic fracturing, formation stimulation and 3D modeling, as well as provision of advanced equipment and software solutions, in order to increase the volumes of Ukrainian gas production on UGV fields.

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Within cooperation between UGV and Halliburton, the companies announced a new achievement – Integrated "turnkey" service contract for Side Track drilling on 26 wells. UGV estimates over 2 billion cubic meters of additional production during 10 years as a result of restoration of idle wells. The total Sidetrack contract value makes around UAH 2.6 billion, or US$98.5 million.

"Naftogaz, UGV and Halliburton believe that strategic cooperation is crucial for development of the oilfield service market in Ukraine and achievement of energy independence of the country," the press service said.

Naftogaz is one of the largest companies in Ukraine and a leading enterprise in the country's fuel and energy complex. Naftogaz is a vertically integrated oil and gas company engaged in a full cycle of operations in the sphere of gas and oil field exploration and development, production and exploratory drilling, gas and oil transportation and storage.

Ukrgasvydobuvannya (UGV) is the largest gas production company in Ukraine, producing 75% of Ukrainian gas. The company's shareholder is Naftogaz. UGV is a vertically integrated company engaged in a full cycle of operations from prospecting and exploration to development, production, transportation, processing of hydrocarbons, and sale of finished petroleum products.

Halliburton is one of the world's largest providers of products and services to the energy industry. Founded in 1919, the company operates in over 80 countries with more than 60,000 employees representing 140 nationalities. The company helps its customers maximize value throughout the lifecycle of the reservoir – from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset.