Ukraine’s Ukrnafta increases oil output by 13,000 tonnes, gas by over 6 mcm using hydraulic fracturing

PJSC Ukrnafta is actively enhancing production by engaging external contractors, which has resulted in a 4.2-fold increase in the output from treated wells and additional production of nearly 13,000 tonnes of oil and over 6 million cubic meters (mcm) of gas.

"One of the most effective methods of intensification is hydraulic fracturing (HF). This technique increases reservoir permeability and boosts well productivity," the company said in a press release on Wednesday.

Some operations are carried out by external partners. Of the 35 planned well operations involving HF, external contractors completed 33 HF procedures in eastern and western Ukraine, with more than 20 wells now in operation.

"Over 90% of the sites have achieved their projected additional production rates, with a success rate of 92%. Overall, total output increased 4.2 times, from 71.8 to 303.7 tonnes per day, resulting in additional production of over 12.7 tonnes of oil and more than 6.4 mcm of gas," said Ukrnafta Director Serhiy Koretsky.

The company added that given the successful and positive results, the program will continue, with external contractors planning an additional 30 HF operations in the first half of 2025.

Ukrnafta is Ukraine's largest oil extraction company and operates a national network of filling stations. In March 2024, the company took over the management of Glusco assets, and now operates 547 filling stations – 462 of its own and 85 under management.

The company is implementing a comprehensive program to renew operations and modernize the format of its filling stations. Since February 2023, Ukrnafta has been offering its own fuel vouchers and NAFTA Cards, which are sold to both legal entities and individuals through Ukrnafta-Postach LLC.

Ukrnafta holds 92 licenses for industrial development of deposits. It has 1,832 oil and 154 gas production wells on its balance.

The largest shareholder in Ukrnafta is Naftogaz Ukrainy, which holds a 50% plus one share. In November 2022, the General Staff of the Armed Forces of Ukraine decided to transfer the corporate rights of the company, previously owned by private shareholders, to the state. The Ministry of Defense now oversees these shares.