Ukrnafta acquires special permit at auction for first time in history

PJSC Ukrnafta acquired a special permit for an oil and gas area in Ivano-Frankivsk region for a period of 20 years.

"This is the first special permit in the history of the company, obtained through an auction of the State Service of Geology and Mineral Resources of Ukraine. The company won the auction, offering UAH 6.5 million," the company said in a press release on Friday.

The new area, about nine square kilometers in size, is located between two existing Ukrnafta fields, which ensures the availability of the necessary infrastructure for hydrocarbon production.

It is expected that the area includes promising reserves of oil, gas and condensate, and the density of unexplored resources is from 30,000 to 50,000 tonnes of hydrocarbons per sq km.

As noted by Ukrnafta, the company's priority plans include conducting a set of geological and geological-industrial studies to study in detail the potential of the new area.

"The purchase of this special permit will contribute to the expansion of Ukrnafta's resource base and will stimulate the development of production," the press release explains.

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 545 filling stations – 460 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.

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.