Ukraine’s oil and gas company Naftogaz is increasing gas production in the Western part of the country with the use of new technologies and equipment. In particular, Lvivgasvydobuvannya Gas Production Division, one of three divisions of the Ukrgasvydobuvannya and the operator of deposits in five Western regions, has transferred 2 per cent more natural gas to the transportation system year-on-year than in 2021.
According to Naftogaz CEO Yuriy Vitrenko, Ukraine’s energy security demands maximum self-sufficiency in the provision of energy sources. Even during the current wartime conditions, Naftogaz is utilising all available options to boost gas production.
“Last year we started to ramp up production values and had all the potential to maintain this trend during the current year. Due to military action our company has lost several wells,” he noted. “However, thanks to the efforts of our employees, production decreases are minimal at just two per cent year-to-date. In comparison, private companies experienced an 11 per cent decline in reduction. In view of the situation in our country, we are planning to intensify the development of deposits in Western Ukraine, where productivity potential is quite high. The drilling of a deviating hole we observed today is one such project. Meanwhile, our company resumes works on damaged or shuttered facilities in the East of the country. As our army wins back territory, next year we are planning to increase production volumes.”
Every year Naftogaz increases capital investments in exploration and production to reach established targets. Next year, investments will rise by 15 per cent upon approval of the Naftogaz Financial Plan by the government.
Indeed, stabilisation and increases in domestic gas production are among the most important factors bringing Ukraine closer to energy independence and ensuring a smooth heating season in 2022-2023 for the country. In view of the war unleashed by Russia and the unprecedentedly high price for gas in global markets, this season may become one of the most complicated periods in the entire history of independent Ukraine.