JSC Ukrgazvydobuvannia of NJSC Naftogaz Ukrainy has failed to meet a plan to increase gas production by the state-owned enterprise to 20.1 billion cubic meters by 2020, Ukrainian Prime Minister Volodymyr Groysman said at a government meeting on Feb. 13.
“I am extremely dissatisfied with the fact that, in fact, Naftogaz’s Ukrgazvydobuvannia actually failed to meet the gas production plan, which we approved for the period before 2020. This is a matter of concern for us. It is important to fix it in the near future,” he said.
Earlier, NJSC Naftogaz Ukrainy said that Ukrgazvydobuvannia implemented the 20 to 20 program in terms of gas production at old fields. At the same time, in 2018, Ukrgazvydobuvannia received only one license for the new site, in 2017 – four licenses, and in 2016 – 13. With a total of five licenses received 2017-2018 and the natural fall (due to the depletion of operating wells) of natural gas production Ukrgazvydobuvannia last year managed to increase production by 1.2 percent, to 15.42 billion cubic meters.
Ukrgazvydobuvannia, fully owned by Naftogaz Ukrainy, is the country’s largest gas producer, which provides about 75 percent of the total gas production in the country.
Natural gas production in Ukraine in 2018 increased by 0.5 percent (by 106.3 million cubic meters) compared to 2017, to 20.898 billion cubic meters. The enterprises of Naftogaz Ukrainy increased gas production by 0.9 percent (by 152.9 million cubic meters), to 16.506 billion cubic meters during this period. In particular, Ukrgazvydobuvannia increased gas production by 1.2 percent (by 176.2 million cubic meters), to 15.420 billion cubic meters, while Ukrnafta reduced it by 2.1 percent (by 23.3 million cubic meters), to 1.078 billion cubic meters. Chornomornaftogaz retained production at the level of the previous year at 8.7 million cubic meters. Other oil and gas producing companies operating in the country in 2018 reduced gas production by 1 percent (by 46.5 million cubic meters) compared to 2017, to 4.391 billion cubic meters.
The 20 to 20 program foresees the increase in gas production to 15.2 billion cubic meters in 2017, to 16.5 billion cubic meters in 2018, 18.3 billion cubic meters in 2019 and 20.1 billion cubic meters in 2020.
