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Ukrgazproduction

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Our main objective is stable supply of the national economy of Ukraine with domestically produced gas.

Illya Rybchych,

General Manager

"Ukrgazbydobuvannya" Affiliated Company was established in accordance with the Resolution No. 1173 "On Delimitation of Functions with Respect of Natural Gas Production, Trasportation, and Realization" issued by the Cabinet of Ministers of Ukraine on July 24, 1998. This Company was established for the following reason: among all activities previously carried out by the JSC "Ukrgazprom," gas production was the most difficult element, because operating gas fields are almost completely depleted, while new ones being developed are at a depth of 5-6 th. m, where the seam pressure constitutes up to 1,000 atm.

Formation of special-purpose affiliated companies, including the AC "Ukrgazvydobuvannya," allowed each of them to professionally accomplish their objectives. Now, we are real experts in the field of production. The main objective that faces the Company is production and processing of gas and condensate.

To accomplish the assigned tasks, the affiliated company incorporates:

Gas Production Department

"Shebelinkagazvydobuvannya,"

"Poltavgazvydobuvannya,"

"Kharkivgazvydobuvannya,"

"L'vivgazvydobuvannya;"

Drilling Enterprise "Ukrburgaz;"

"Ukrgazpromgeofizyka" Department;

Ukrayinsky naukovo-doslidny instytut pryrodnykh gaziv (Ukrainian Research Institute for Natural Gases) -- UkrNDIgaz;

Voyenizovana Gazoryatoval'na Protifontanna Chastyna " LIKVO" (Paramilitary Gas Rescue Anti-Gusher Unit "LIKVO").

The affiliated company "Ukrgazvydobuvannya" is a complex economic association that constructs gas and condensate drilling rigs, performs exploration work for the purpose of searching for said carbohydrates, as well as produces, processes, and prepares them for transportation. The Company’s fixed assets total 4,369.2 mn hryvnias, and the number of employees on payroll is more than 18 th. persons.

PRODUCTION

The Company develops and operates 97 gas fields. Annually, these gas fields produce more than 13.5 BMC of gas and more than 550 th. t of condensate and oil.

Such results have been reached owing to efforts at the fields to take organizational-and-technical acts and actions aimed at stabilization and augmenting of gas and condensate production.

PROCESSING

Preparation and processing of carbohydrates is a top priority line of the Company activity. Renovation of the Shebelinka Gas-Processing Plant enabled to increase the rated gas condensate processing capacity from 500 th. t to 600 th. ò a year and commence production of the lead-free high-octane and environmentally appropriate gasoline À²-98. This plant is the Ukraine's only producer of gasoline. Putting the Yabluniv Gas Processing Plant into operation will allow, owning to deep-bed condensate polishing, to increase the natural gas condensate output by 30 th. t and thus produce about 100 th. t of propane-butane per annum.

DRILLING

Ukrgazodobuvanny Drilling Enterprises carry out activities on construction of exploration and development gas wells at 60 Ukrainian gas fields, most of which are characterized by very complex mining and geological conditions.

High occupational skills and state-of-the-art technologies enable to annually increase hole making work volumes that in 2000 will total 200 th. m, and which are the ground for stabilization and further growth of gas production in Ukraine.

EXPLORING

Volumes of seismic exploration work related to preparation of objects for exploration and development drilling are growing. Exploration work was performed at 23 sites. In addition, at 4 sites, exploration work was funded and materially supported by the Company. Positive geophysical results were obtained with respect of the existence of gas-bearing strata in exploration wells at Krasnohradska, Yevhenivska, Tvirzhivska, and Kruzhilivska sites. It is planned to increase the gas production volume by 4.3 BCM.

RESEARCH

The gas production industry is a science intensive sector of the national economy and at each stage, its development is subject to wide application of achievements of science and technology.

The scientific and research support of AC "Ukrgazvydobuvannya" activities is provided by the research institute "UkrNDIgaz," 12 research-and-design as well as other offices that perform work under 159 scientific-and-technical production development programs. The purpose of most developments is increasing of the productive capacity of gas condensate fields, flow rate, and wellsite operation reliability.

ECOLOGY

Safe living and working conditions of gas sector employees are a condition for a guaranteed economic progress. To this end, since its establishment, the Company has employed its best efforts to ensure good and safe conditions of work. The Labor Protection Service was transformed into Job Safety Service composed of about 100 labor protection, gusher safety, environmental safety, fire safety, and road safety specialists. 147 voluntary fire brigades, 21 fire engineering committees, and 21 standing labor protection committees operate at Company objects. The environmental control at them is performed by environmental services and laboratories.

Our job safety management system provides favorable conditions for ever-decreasing level of industrial induries, accidents, and improvement of the work environment.

LIKVO

Paramilitary Gas Rescue Anti-Gusher Unit "LIKVO is a special division of the AC "Ukrgazvydobuvannya" that has gained an abundant experience in gas gusher prevention and safety gas gusher liquidation.

Specialists of this Unit took part in liquidation and directly managed activities on liquidation of more than 80 open gushers in Ukraine, as well as in former Soviet and foreign states, including offshore fields, and shelf deposits.

The Unit developed and implemented a variety of blowout preventive equipment, including such equipment designed for undersea work.

CONCLUSIONS

To accomplish the prime objective – to ensure reliable supply of Ukraine with domestically produced natural gas – a variety of tasks ought to be accomplished. In particular, heavy investments should be made in exploration, drilling, and well equipping activities with respect of new fields. Further activities on expansion of resources sufficient to ensure stabilization and increasing of gas production output should be carried out. Gas and condensate production intensification methods should be implemented, as well as methods providing more complete sycling-based recovering gas and condensate from gas- and condensate-bearing strata with the high percentage of condensate that enables to materially increase (around 30%) the final condensate recovery coefficient. A higher gas and condensate processing quality should be provided for the purpose to produce propane-butane.

Successful execution of economical and social programs will be impossible, if the maximum level of available domestic fuel and energy resources is not ensured.

“Owing to the reorganization in the gas production sector, as well as correct usage of funds, and sound policy of the National Joint Stock Company "Naftogaz Ukrayiny," we have time and an opportunity to deal with technology-related issues on stabilization of production, processing, and refining of gas, as well as employment-related and socal policy issues, and to ensure the up-to-date production level.”

Illya Rybchych,

General Manager