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Gas extraction by private companies may reach 5 bcm for first time in 2021 – profile association
KYIV. Sept 9 (Energy Reform) – The volume of production of private gas companies by the end of this year may for the first time in history exceed 5 billion cubic meters (bcm), the executive director of the Association of Gas Producers of Ukraine, Artem Petrenko, has said.
"Private gas companies continue the trend to increase production. Knocking on wood, we predict that if nothing changes, private companies will be able to produce 5 billion cubic meters of gas for the first time in history. Last year, production amounted to 4.9 billion cubic meters," Petrenko said during an expert discussion regarding the future of Ukrainian gas production organized by the association.
According to his forecast, subject to favorable conditions and fiscal regimes and thanks to the investments of companies in the current year, the upward trend in production will continue in the future.
At the same time, he noted that the three-fold decrease in the number of drilling recorded in March-April last year was replaced by the intensification of this process in November-December.
"Now we see a stable trend towards an increase in active drilling rigs, and, by the way, not only private, but also state-owned companies. We see that Ukrgazvydobuvannia is actively increasing the volume of drilling. We hope that there will be no political decisions either on prices or on restrictions, which may affect the cash flow of companies, because of which they will not be able to drill," Petrenko said.
At the same time, he pointed out that incentive rent, especially with gas prices in 2019-2020, has become a decisive factor in increasing production.
As reported, DTEK Oil and Gas produced more than 1.1 billion cubic meters in January-July, which is more than 10% more than in the same period in 2020.
In January-August 2021, Ukrgazvydobuvannia reduced natural gas production by 5% (by 485 million cubic meters) compared to the same period in 2020, to 9.08 billion cubic meters.
PJSC Ukrnafta in January-June 2021 produced 739,300 tonnes of oil and condensate and 542.1 million cubic meters of gas, exceeding the approved production plan by 3.3% and 7.9%, respectively.
