June is full of important events in oil and gas industry. Ukraine placed fourth in Europe in terms of gas production, furthermore our country have been included for the first time to the world-wide active drilling rigs report and joined top ten countries in the world that conduct oil and gas licensing rounds.
1. Baker Hughes GE informs “Each second drilling rig in Europe works in Ukraine”
Due to efforts of the Association of Gas Producers of Ukraine, our country was included for the first time to the worldwide Baker Hughes GE Rig Count. According to the report, we are taking a leadership in Europe in number of active drilling rigs in May. There were 186 active drilling rigs (including 44 offshore) in Europe, almost half – 84 operated in Ukraine.
Baker Hughes Rig Counts are published by major newspapers and trade publications, are referred to frequently by journalists, economists, security analysts and government officials, and are included in many industry statistical reports.
2. British Petroleum claims, “Ukraine joined the ‘European League’”, leaving the CIS group
According to the British Petroleum Statistical Review of World Energy, our country places fourth in Europe in terms of production output, second place – confirmed resources, first place – reserves-to production ratio (R/P ratio).
3. Drilling info: Ukraine among TOP-10 countries conducting O&G licensing rounds
Forty-nine countries conducted 105 PSA tenders and concession auctions during the last half-year period. According to the Drilling info data, this number includes Australia, Great Britain, Denmark, Mexico, India, Argentina, Brazil, Ukraine, Poland and Croatia. In 2019, Ukraine conducts online auctions and PSA tenders, offering to investors 39 blocks for exploration and production of hydrocarbons.
4. Canadians, Americans and Ukrainians are the winners of PSA tenders
The most tremendous in Ukraine`s history PSA tenders have been completed. 14 companies including 4 foreign entities submitted their applications on PSA tenders for nine onshore blocks with total acreage 11,4 sq.km. Seven companies were selected winners, as follows: Ukrgasvydobuvannya (Buzivska and Berestyanska blocks), two joint applications UGV and Vermillion Energy (Balakliyska and Ivanivska), American Aspect Energy won Varvynska block tender, four leading domestic gas producers Geo Alliance, Ukrnaftoburinnya (UNB), DTEK OIL&GAS, Zakhidnadraservice (ZNS) won following blocks Sofiyivksa, Zinkivska, Rusanivska and Uhnivksa accordingly.
Government has to consider Interdepartmental agency`s recommendation and approve the winners of the tenders during two-month period.
5. Online Auctions: Ukrgasvydobuvannya obtained seven licenses
Ukrgasvydobuvannya purchased seven licenses for UAH 82, 9 million during the third online auction, on the ProZorro.Sale platfrom. Blocks are located in three regions: Ivano-Frankivsk, Kharkiv and Dnipropetrovsk. Total acreage of the blocs is about 1260 sq.km.
The fourth round of online bidding will take place on September 16, where three blocks in Lviv and Zaporizhzhya regions will be proposed.
6. UGV`s PEC project
Four companies have passed qualification for participation in Ukrgasvydobuvannya`s” PEC (Production Enhancement Contract) tender. This number includes companies from USA, Romania, China and Ukraine/Great Britain. During three-month term, they can get acquinted with all geological data respecting proposed fields and submit their offers.
7. Geoscience data was disclosed
State Geological Survey simplified access to the primary geological data. Each applicant previously sent to the Survey the request enables to visit repository where primary geological data is stored (seismic, well log data, core boring etc.) and immediately get the right to acquaint with it.
8. Gas bidding
Naftogas Trading announced the launch of bidding at Ukrainian Energy Exchange. It enables to increase the transparency of gas price forming and make Ukrainian market as a key indicator of changes.
9. Returning of Halliburton
Leading American service company Halliburton resumes its operation in Ukraine in the framework of cooperation with Ukrgasvydobuvannya. Both companies established new direction, which is providing integrated services on turn key basis for sidetrack drilling on 26 wells.