Two largest state mining companies of Ukraine announce partnership

The companies Ukrnafta and Ukrgazvydobuvannya are considering the possibility of joint production of oil and gas on license areas where one company owns the production permits and the wells belong to another, the press service of Ukrnafta announced.

So far, the partnership is at the stage of consultations to determine the areas where it is possible to deploy this project. Companies are also analyzing the necessary technical and regulatory issues to move into practical operation.

"The synergy of cooperation between the two state-owned mining companies will make it possible to bring a number of wells out of operation and resume hydrocarbon production on them," Ukrnafta General Director Serhiy Koretskyi said.

In addition, Ukrgazvydobuvannya and Ukrnafta are considering the possibility of joint use of ground infrastructure and exchange of geological data on adjacent license areas.

The companies also began discussing potential joint exploration and development of oil and gas fields.

"Our companies have a huge potential for cooperation, which we are finally starting to realize. We hope that such work will soon materialize in the form of additional cubic meters of gas and tons of oil," said the head of Ukrgazvydobuvannya Oleh Tolmachev.

Ukrgazvydobuvannya is 100% owned by OJSC "Naftogaz of Ukraine", Naftogaz's share in Ukrnafta is 50% + 1 share.

Last week it was reported that Ukrnafta is considering the possibility of restoring 500 closed wells.