Amidst the pandemic and the record drop in hydrocarbon prices, which negatively affected all companies' investment plans in the oil and gas industry without exception, PrJSC MC Ukrnaftoburinnya retained the leading position in the private production of hydrocarbons in Ukraine.
Over twelve months of 2020, UNB has had the following achievements:
• UNB produced 725.4 million m3 of natural gas, 80.8 thousand tons of oil and condensate. Overall gas production at the Sakhalin Field was 844.3 million m3, while oil and gas condensate production was 86 thousand tons.
• Thus, UNB production results remained almost at the 2019 level, having declined slightly (gas – by 1%, oil/condensate – by 7%) even though in 2020 the company had to give up drilling new wells (in 2019, five new wells were developed).
• The company performed considerable technological upgrades. In particular, it commissioned a modern propane cooling unit (PCU). This processing train's capacity allows 2 million m3 of the Sakhalin Field gas to be treated daily.
• The company repaired well No. 35 at the Sakhalin Field using a cutting-edge snubbing unit, thus avoiding a decrease in production rates and extending the time between repairs.
• The company fully met all legal, financial obligations to the state and partners. During 2020, the total amount of payments to the budget was about UAH 2 billion.
• The rent paid by UNB in 2020 for the use of subsoils and production of oil, gas and condensate comprised UAH 882 million. Out of this amount, UAH 44 million was received by the local budgets, including:
- UAH 17.6 million – the budget of the Kharkiv region;
- UAH 17.6 million – the budget of the Krasnokutsk district;
- UAH 8.8 million – the budgets of the Oleksiyivka, Kachalivka and Kytchenkivka rural councils.
• The company significantly strengthened its geological and technical team and attracted internationally recognized experts. Hence, Miljenko Cimic headed the Geology Department. He is a specialist with more than 35 years of experience in the oil and gas industry, including such companies as Svenska Petroleum Exploration, Schlumberger, Gaffney and Cline, ENI, TNK-BP, Rosneft, UkrGasVydobuvannya, etc.
• Forbes Ukraine magazine named Michael Bakunenko, Chairman of the Executive Board of PrJSC MC Ukrnaftoburinnya, one of Ukraine's best CEOs. The magazine's editorial board selected the 25 best Ukrainian CEOs who have successfully navigated companies through the challenges of 2020.
“The main goal for 2020 was to maintain the high level, the practices and the professional team that the company has built over the past five years. We focused on maintaining the production levels of existing wells, operational efficiency, ensuring each employee’s maximum safety, and getting through all the challenges the company faced this year with dignity. In doing so, we managed to avoid a significant production cut and made important technological upgrades and strengthened the team, all in the midst of a true crisis for the industry. I am grateful to everyone at UNB for their utmost dedication this year. Given the current price expectations, in 2021, the company plans to implement several projects that have been postponed - drilling a new well, a number of activities to support and improve the performance of existing wells and the oil and gas treatment unit, the search for new attractive assets,” commented Michael Bakunenko, Chairman of the Executive Board of PrJSC MC Ukrnaftoburinnya.