The increase in drilling activities at Ukrnafta's fields is creating a demand for modern services from external suppliers. In the coming year, the company plans to engage eight drilling rigs from the market in addition to its two rigs.

"By the end of the year, the company plans to construct 9 new wells. For the next year, drilling of 30 wells is planned," announced Deputy Director of Exploration and Development of Deposits at PJSC "Ukrnafta," Volodymyr Gryshchenko, at the VII Kyiv Oil and Gas Conference by Newfolk NKC.

He mentioned that seven wells are already being drilled or are in the process of being put into operation. Two more are in preparation. As promised, there will be nine new oil wells in 2023, and even more ambitious plans for 2024, as stated by the CEO, Serhiy Koretskyi.

It's worth noting that procurement of services and goods will be conducted exclusively through the "Prozorro" public procurement system, and the first tenders for 2024 will be announced this year.

Gryshchenko also highlighted that Ukrnafta is resuming seismic surveys, which were last conducted ten years ago. The company has developed a 5-year strategy to cover all of its own deposits and prospective areas with 3D seismic. The work will be done using wireless technology.

Importantly, the first tenders were won by Ukrainian contractors specifically for wireless seismic operations, as pointed out by Gryshchenko.

He also noted that partners would be sought for hydraulic fracturing (fracking) operations. Ukrnafta has already prepared 40 wells for fracking, and it plans to engage contractors with the necessary equipment and expertise.

Although many service works are performed in-house by Ukrnafta's divisions, Gryshchenko does not rule out involving suitable market contractors if drilling and exploration operations increase.

PJSC "Ukrnafta" is the largest oil extraction company in Ukraine, holding 87 special permits for hydrocarbon extraction. The company operates in the eastern and western regions of Ukraine. In 2023, the company plans to increase oil production by 5.8% (0.077 million tons) compared to the previous year, reaching 1.447 million tons. Gas production is expected to rise by 0.3% (0.003 million cubic meters) to 1.04 billion cubic meters.

Ukrnafta is also the operator of a national network of petrol stations with 537 stations, of which 456 are operational. The company is implementing a comprehensive program to renovate its petrol stations and renew their formats. Since February 2023, Ukrnafta has been issuing its fuel vouchers and "NAFTAKarta" cards, available to both legal entities and individuals through LLC "Ukrnafta-Postach."

The largest shareholder of Ukrnafta is NJSC "Naftogaz of Ukraine" (50%+1 share). On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine made a decision to transfer the corporate rights of the company, which previously belonged to private owners, to the state, and the Ministry of Defense now manages these rights. In November 2022, Serhiy Koretsky was appointed as the director of the company.