Ukrnafta starts drilling new well

MOSCOW. July 5 (Interfax) - Ukrnafta has begun drilling a new exploration well in western Ukraine, Ukrainian media quoted company head Sergei Koretsky as saying on social media.

"The target depth is 2,754 meters. The new well should reveal pay zones in menilite deposits," he said.

The company is doing the work with its own rig and specialists from Ukrnafta Drilling.

The forecast initial flow rate is expected to be 16 tonnes per day.

Koretsky said Ukrnafta was also preparing to drill two oil wells in the east of the country, which will produce more than 100 tonnes of oil per day between them. Both have target depths of about 4,500 meters.

Ukrnafta increased production of oil with condensate by 39,900 tonnes or 3% to 1,409,900 tonnes in 2023. Production of natural and associated petroleum gas increased by 60.4 mcm or 5.8% to 1.097 billion cubic meters.

Ukrnafta has the strategic goal of doubling oil and natural gas production by 2027, to 3 million tonnes and 2 billion cubic meters, respectively.

Ukrnafta is Ukraine's largest oil producer and operator of the national chain of filling stations. The company started to operate the Glusco network in March 2024 and now operates 545 filling stations in total - 460 under its own brand and 85 under management.

The company is carrying out a comprehensive program of resuming its operations and updating the format of filling stations of its chain. Since February 2023, Ukrnafta has been issuing its fuel coupons and NAFTACard cards sold to legal entities and individuals by Ukrnafta-Postach LLC.

The biggest shareholder is Naftogaz with 50% plus one share. The Headquarters of the Supreme Commander-in-Chief ruled on November 5, 2022 to expropriate Ukrnafta shares owned by private shareholders - that stake is now controlled by the Defense Ministry.