Ukrnafta: Investors are interested in restoring 30 wells

PJSC Ukrnafta has started accepting applications from investors to restore production at 30 abandoned wells by sidetracking.

This was announced on the sidelines of the ХI International Oil and Gas Conference “Coiled Tubing. Hydraulic Fracturing. Well Services. Geology and Geophysics”, by Volodymyr Hryshanenko, Deputy CEO at PJSC Ukrnafta.

Well revitalization is an important element of production increase. The company's specialists audited the abandoned wells owned by PJSC Ukrnafta.

There are 4,222 of them in total. Of these, 2,100 are within special permits of PJSC Ukrnafta. Out of these two thousand, 700 are within the reserves outlines. That is, they can be restored, and additional production can be obtained.

“The plan for 2024 is to start restoring 30 wells by drilling sidetracks,” said Volodymyr Hryshanenko. – “There are already interested companies that have access to the geological database for these wells.”

PJSC Ukrnafta, as the owner of the well and the special permit, has all the necessary infrastructure, produces and manages the hydrocarbons.

The investor receives funds through cash flow generation from the restored well.

An agreement shall be concluded on the principles of the Risk Service Agreement.

What needs to be done to work with PJSC Ukrnafta in this area:
- apply;
- pass compliance;
- sign an NDA;
- get access to geological data;
- submit proposals;
- come to the tender on Prozorro.

Then an agreement shall be signed with the winners and work begins. The investor is obliged to carry out work to restore production — this can be done on its own or by engaging turnkey contractors. PJSC Ukrnafta shall exercise operational control.

The investor receives 70% of the funds generated by the restored well until it recovers its investment. After that, he/she will receive 50% of the funds.