Naftogaz presents plans to increase hydrocarbon reserves

Naftogaz Group has presented details of strategic areas and gas production projects to Ukrainian Prime Minister Denys Shmyhal. The heads of the various ministries and other central authorities as well as Ukrainian MPs participated in the discussion.

Naftogaz Group is seeking to increase its resource base through the exploration of new fields and by developing the potential of new projects.

Naftogaz Group, as a state-owned company and Ukraine's leading gas producer, is ready to implement pilot projects in new production areas, mitigating their risks for the entire market.
Event participants presented opportunities for deep drilling, tight gas and offshore operations in the Black Sea.
In addition to these opportunities, the oil and gas industry requires certain government decisions.
These include signing PSA agreements that were won through competition more than a year ago, introducing an incentive royalty for tight gas, and giving producers access to the Black Sea shelf and a number of large promising onshore fields. It is also important to continue incentive royalties for conventional gas and simplify licensing procedures.

“Domestic gas production should become the basis for Ukraine’s energy independence. Today we have free entry into the EU gas market, which also contributes to the diversification of energy sources. Nevertheless, during our meetings with the Ukrainian President, we repeatedly raised the issue of enhancing domestic production. We need to hold the relevant exploration works, complete partially implemented exploration plans, and start production quickly. Meanwhile, the government exerts every possible effort to achieve this; and we also expect relevant legislative initiatives from MPs. I’m sure that together we will manage to do the necessary work and increase Ukraine’s energy independence within a short-term perspective,” Prime Minister Denys Shmyhal said.

“Ukraine has opportunities to move from stagnation towards increases in production. However, new areas and projects that can deliver this result pose significant risks and require substantial investments, new technology, and expertise. We, as a company pursuing Ukraine’s interests, are ready to assume the responsibility. We are ready to study and explore these opportunities for the entire industry and the country. But successful implementation requires a proactive attitude from the state and our cooperation,” Naftogaz CEO Andriy Kobolyev noted.

“We need to increase domestic gas production, which is key to Ukraine’s energy independence. With my relevant educational background and many years of experience in production companies, I can state that Ukraine has potential in mineral resources. Both state-owned and private companies have already been developing deep horizons. The relevant parliamentary committee is ready to support initiatives and contribute to solving regulatory issues aimed at enhancing Ukraine’s production,” Deputy Head of the Verkhovna Rada Committee on Energy, Housing and Utilities Oleh Seminskyi commented.

Tags: The Cabinet of Ministers, Naftogaz, contracts, Kobolyev, hydrocarbon production, legislation, EU, energy market, Ukrgazvydobuvannya, gas production, GTS, drilling, Gas processing plant, foreign affairs, heating season, Gas market, negotiations, investments, pipeline, agreement, gas supplies, well, field, infrastructure, energy sector, natural gas, Shmyhal, population, The Ministry of Energy, economy, market, gas production, housing and public utilities, gas transmission system, supplier, consumers

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