Ukrnafta boosts daily gas output to 3.1 mcm

Ukraine's largest oil producer, Ukrnafta, boosted the average daily gas production at the beginning of the second half of 2018 (H2) from 2.9 million cubic meters (mcm), to 3.1 mcm.

"In H1 2018 and in July, this figure stood at 2.9 mcm, whereas on August 1-26 it grew to 3.1 mcm. The company was able to achieve this result using only the existing wells and under the conditions of limited investments," the company's press service said in a statement on August 28.

Read alsoUkrnafta pays over US$282 mln in taxes in H1

As reported, the growth in production is achieved due to focus on the existing high-potential wells.

In particular, Ukrnafta prioritized 100 high-potential wells on 33 fields for intensification jobs.

The company has also updated its annual gas production forecast to 1.054 billion cubic meters (bcm).

As UNIAN reported earlier, Ukrnafta in 2017 reduced oil production by 9.2%, to 1.379 million tonnes against 2016, while cutting natural gas output by 14.8%, to 1.108 bcm.

The company said the main reason for the reduction in hydrocarbon output was blocking the extension of special permits by the state. If special permits had been extended on time, the output of oil, condensate, and gas would have remained stable throughout the year.

In 2017, nine licenses of Ukrnafta expired. The company's attempts to renew them were blocked by Ukraine's State Service of Geology and Mineral Resources. As a result, Ukrnafta was forced to stop production at six fields from April to June 2017.

Later, the company won a number of lawsuits, successfully appealing inaction of the Geology Service. In late October and November 2017, Ukrnafta was able to resume production at the said fields.

In addition, Ukrnafta filed applications with the Service to extend 27 special permits, which are expiring in 2018. The permits are related to 24% of annual oil and condensate production and 18% of the company's annual gas output.

UNIAN memo. Ukrnafta is the largest state-owned oil and gas company in Ukraine. It accounts for 65.7% of oil and condensate production, and 5.3% of gas extraction in the country. There are 43 drilling rigs, 1,936 oil and 168 gas wells on the enterprise's balance sheet. Ukrnafta owns 537 fuel filling stations throughout the country. The company's 50% stake + 1 share belong to oil and gas giant NJSC Naftogaz of Ukraine.