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National Joint Stock Company Nadra Ukrainy plans to resume extraction of natural gas at the company-owned wells that were previously conserved or closed, according to the company chief Yaroslav Klymovych.
"There are wells that can be repaired for a small price, and we can get gas there. If we compare, overhaul could cost UAH 10 million, while drilling a deep well at 5,000 meters would cost $10 million. The difference is obvious. We have about 190 of these wells. We want to show their potential with expected flow rates to justify the economic feasibility of the proposal," said Klymovych in an exclusive interview with UNIAN.
According to him, the company decided on the resumption of gas production after a deep analysis of abandoned or suspended wells that were previously drilled subsidiaries of Nadra of Ukraine.
Read alsoChevron quits Ukraine, drops $10 bln shale gas project"They were not used, because in the 80s or 90s they were considered unprofitable," said Klymovych.
He said that, because of the actions of the previous management, the company has not been engaged in gas production for the past three years.
"In the last few years, Nadra Ukrainy had other interests. Before 2006, NJSC Nadra of Ukraine used to produce nearly 500 million cubic meters of gas. From 2012-2013 until today we’ve had virtually no production. Only one subsidiary - Zahidukrgeologiya – continued production at low volumes," said the head of the company's board.
Read alsoNadra Ukrainy to cooperate with Poland’s Exalo Drilling in oil and gas explorationAt the same time, he said that the subsidiary company Chernihivnaftogazgeologiya is now working on restoring the previously conserved well at Shatravinsko gas field.
"We have allocated funds for this enterprise, and it has begun the overhaul. We hope that soon we get production started, which in turn will return funds. It is very important, not only for the company to provide exploration services, but also for the development of mining potential," said Klymovych.
In addition, he said that 407 hydrocarbon fields have been discovered across Ukraine. The current state of the country’s hydrocarbon potential is estimated at 9.32 billion tonne. The volume of depletion of oil, gas and condensate production is 5.7 billion tonnes.
"Ukraine’s resource potential is still great. But the problem is that the entire domestic production exists only due to the active work of the geological industry back in 70-90s. Today, it virtually suspended its activities," said Klymovych.
UNIAN memo. National Joint Stock Company Nadra Ukrainy is Ukraine’s leading company in the field of exploration. It has 20 special permits for use of oil and gas bearing subsoil (with a capacity of 47 million tonne), 120 wells set to be restored, 16 priority areas for drilling, and 40 sites for seismic surveys. In addition, there are 23 business projects on promising exploration areas are being developed.
The company consists of 13 exploration and specialized companies.
100% of shares of Nadra Ukrainy is owned by the State represented by the State Service of Geology and mineral resources.