Ukrnafta upgrades equipment to API standards
MOSCOW. Feb 12 (Interfax) - Ukrnafta last year made 4,635 successful purchases worth 6.24 trillion hryvni for its production, technological and other needs, and signed contracts with the global leaders in oil production.
"This, essentially, without exaggeration, is a breakthrough for the company. In 2023 Ukrnafta signed a memorandum with the American Petroleum Institute (API) and embarked on the course for international standards in production and services and to replace obsolete equipment with the best modern technologies," the Ukrainian media quoted Ukrnafta's director Sergei Koretsky as saying in the company's statement.
By now the company has signed a number of contracts and framework agreements with global leaders in oil production and oil services, including with America's Baker Hughes GmbH, to buy 343 electric centrifugal pump units, and Weatherford Products GmbH, to buy 478 sucker-rod pumping units.
Contracts were also signed with China's Laizhou City Rising Star Artificial Lift CO. LTD, to buy spare parts for the electric centrifugal pumps already in use in the wells; with China's Changfeng Wire and Cable, to buy an electrical submersible pump cable; and with Germany's Oil Dynamics GmbH, to buy 200 electrical centrifugal pump units, the first 50 of which already arrived at the warehouse in Dolina.
"In addition, a framework agreement has been signed with Weatherford Ukraine LLC to deliver services and equipment for geological exploration, drilling, development, extraction, and stimulation of wells and deposits," Ukrnafta said. Under that agreement, the company already received geophysical exploration services and had a casing string placed into one of its wellbores, and is expecting a delivery of two batching units for the supply of liquid chemicals.
On top of that, Ukrnafta signed a framework agreement with Saudi Arabia's Alkhorayef Petroleum Company to buy downhole equipment; under its first order, now agreed, the company is due to receive 50 electrical centrifugal pump units and auxiliary equipment in 2024.
"Gradually, step by step, Ukrnafta will introduce modern technologies and complete its transition to the concept of a digital wellbore and digital oilfield," the company said.
It was reported that in 2023 Ukrnafta increased its production of oil and condensate by 3% (or 39,900 tonnes), compared with 2022, to 1,409,900 tonnes, and of natural gas by 5.8% (or 60.4 million cubic meters), to 1,097,400,000 cubic meters.
The company's strategic goal is to double oil and natural gas production to 3 million tonnes and 2 billion cubic meters by 2027.
Ukrnafta is Ukraine's largest oil producer with a network of 537 petrol stations, of which 456 are operational.
Its biggest shareholder is Naftogaz which owns 50% plus one share. On November 5, 2022 the Stavka (supreme command) of the Ukrainian Supreme Commander-in-Chief decided to transfer the stake of the company's corporate rights held by private owners to the state. It is now managed by the Defense Ministry.