31 Jan 2024 15:58

Ukrgasvydobuvannya boosts gas output for first time in five years in 2023 - CEO

MOSCOW. Jan 31 (Interfax) - JSC Ukrgasvydobuvannya, Ukraine's largest producer of natural gas and gas condensate, boosted gas output by approximately 700 million cubic meters in 2023 versus 2022, Ukrainian media reported, citing Ukrgasvydobuvannya CEO Oleg Tolmachev.

"The company boosted annual production for the first time in five years. We broke the downward trend that Ukrgasvydobuvannya had experienced since 2019, and we added approximately 700 million cubic meters in 2023 versus the level of 2022," Tolmachev said on Tuesday during an online forum organized by the Energy Club Ukrainian business association.

Tolmachev said that the daily flow rate rose 11% over the past year, or more than 4 million cubic meters.

Tolmachev also said that Ukrgasvydobuvannya demonstrated very good results compared to European companies, several of which even reduced production.

"Although the wells in our portfolio are 70% depleted, we continue to optimize our work at these sites thanks to mechanized lift technologies, new 3D seismic work, and updated 2D seismic processing, which allows us to search for undrained pockets of gas. Plenty of gas has also been recovered from depleted fields by utilizing hydraulic fracturing and successful well workovers," Tolmachev said.

Ukrgasvydobuvannya "obtained the highest production from well workovers in four years" at 20% more than in 2021, Tolmachev said.

The company plans to organize 3D seismic work in eastern Ukraine in order to expand the areas discovered in 2023. "There are very interesting prospects, and more 3D seismic work needs to be completed. We have a large number of projects to optimize ground infrastructure, optimize pressures for additional flow rates. We are preparing to start horizontal drilling. There are strategic plans for 2027," Tolmachev said.

As reported, Ukrgasvydobuvannya has been instructed to ramp up the production of natural gas by 1 billion cubic meters in 2023. The company produced 12.5 bcm of natural gas in 2022, a decline of 3% year-on-year.

NJSC Naftogaz of Ukraine owns 100% of the shares in JSC Ukrgasvydobuvannya.