Naftogaz explained why they produced less gas than planned

The company Ukrgazvydobuvannya will not produce about 27% of the gas volumes that were included in 20/20 program.

This was announced at the press conference “Own Gas: Results and Prospects” by Andrew Favorov, Director of the integrated gas business of Naftogaz of Ukraine, Kosatka.Media reports.

Among the reasons why UGV failed to produce the planned volumes of gas, he named: the depletion of the largest fields, the blocking of new licenses due to bureaucracy, the cheapening of gas worsened the production economy, lack of investment.

“Shebelinka has been in operation since the 50s. In the 50s, another field was discovered in the Netherlands – there is exactly the same story, the same rate of decline. The freshest is 1979. The story is drawing to a close. We will not squeeze out more of these squeezed lemons”, he emphasized.

In addition, over the past 15-20 years, the Dnieper-Donets depression did not have major geological discoveries. And their probability is low. 

“If we have been searching for gas for 70 years in the Dnieper-Donets depression, then what is the probability, what reserves will we find there? Based on the information that we have, with a 10% probability we will find reserves of about 12 billion cubic meters”, said Favorov.

He added that private gas producers also underproduced about 20% of what was expected.

Favorov also said that the fact of gas consumption is higher than planned – by 7%, by 1.8 billion cubic meters, despite the temperature factors and a decrease in consumption due to a decrease in the economic activity of metallurgists and other industries.

“This means that there are questions not only for production, but also for energy efficiency”, said Favorov.

According to Kosatka.Media, earlier Ukrgazvydobuvannia and Vermilion Ukraine Exploration, a subsidiary of the Canadian oil and gas company Vermilion Energy, had filed joint applications for participation in 2 tenders for the conclusion of hydrocarbon sharing agreements (PSA), which will be produced within the Hrunivska and Akhtyrska fields.

Tags: gas, Naftogaz, hydrocarbon production, Ukrgazvydobuvannya, gas production

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