Naftogaz looking to modernize Ukraine's gas production following US industry models
Illustrative photo: depositphotos.com

Ukraine's state gas company Naftogaz is looking to upgrade domestic natural gas production methods by drawing on techniques successfully employed in the American energy industry, according to a report from The National Interest. Naftogaz aims to modernize Ukraine's gas sector following U.S. models that have boosted efficiency and output abroad.

For in-depth analysis and longer stories, follow us on LinkedIn

Ukraine can become an energy-independent country in six years if it invests $20 billion in oil and gas production, pipeline infrastructure and oil refining, the article says.

"Leading the way is Ukraine’s largest company, state-owned Naftogaz, which employs more than 50,000 people and contributes more than 10 percent of the country’s tax revenue. The company has long been hamstrung by comparatively crude Russia-inspired techniques for natural gas development. But its CEO, Oleksiy Chernyshov, seems determined to modernize methods for natural gas development in Ukraine, primarily by bringing in overseas expertise from the US," the article reads.

The journalists note that in April Chernyshov arrived in Washington to talk with representatives of the American oil giants ExxonMobil, Chevron and Halliburton, as well as to receive political support from members of Congress regarding US investments in the energy sector of Ukraine.

In 2023, Naftogaz Group plans to increase gas production by 8% compared to 2022.

In early July, the state-owned Ukrainian oil and gas company responsible for natural gas extraction, Ukrgazvydobuvannya, completed drilling Ukraine's deepest well to date at 6,600 meters.

During the first half of 2023, Ukrgazvydobuvannya commissioned 13 high-production wells capable of yielding over 100,000 cubic meters of gas per day after drilling and major repairs. One well immediately began producing 580,000 cubic meters daily.

On August 15, Ukrgazvydobuvannya—part of the Naftogaz Group—launched two additional high-output wells as part of efforts to boost domestic production and minimize imports, as pledged by Naftogaz leadership in February. Combined, the new wells yield over 430,000 cubic meters of natural gas per day.