Ukrnafta drills new exploration well in western Ukraine

MOSCOW. Nov 24 (Interfax) - Ukrnafta has started to drill a new exploration well in western Ukraine, Ukrainian media quoted company head Sergei Koretsky as saying on social media.

He said the new inclined well would be 2,213 meters deep and that more than 1,000 meters had already been drilled. The company is using its own rig, which drilled a previous well in the same region.

The well should access two pay zones. According a digital 3D geological and hydrodynamic model of the field, there are 464,000 tonnes of recoverable reserves at greater depths. The shallower horizon has reserves of 1.121 million tonnes.

"Thus, when we obtain a resource at a deeper horizon, and when production volumes drop, it will be possible to go back higher up and give the well a new lease of life with the help of a workover. Such an approach will enable the company to make more effective use of its existing technological resources," Koretsky said.

Ukrnafta plans to start drilling nine new wells in 2023 and 30 in 2024, reports have said. It has the strategic goal of doubling oil and natural gas production by 2027, to 3 million tonnes and 2 billion cubic meters respectively. Ukrnafta plans to increase oil production 4% to 1.405 million tonnes and in 2023.

Ukrnafta is Ukraine's biggest oil producer. It has a national network of 537 filling stations, of which 456 are operating.

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