Ukrnafta receives first applications from investors to restore 30 wells

PJSC Ukrnafta has received the first applications from interested investors to restore production at 30 abandoned wells by drilling sidetracks.

This was announced by Volodymyr Hryshanenko, Deputy CEO of the company, at the conference “Coiled Tubing. Hydraulic Fracturing. Well Services. Geology and Geophysics,” Ukrinform reports with reference to the Ukrnafta’s press service.

"The plan for 2024 is to start restoring 30 wells by drilling sidetracks. There are interested companies that have access to the geological data base for these wells," said Hryshanenko.

He noted that Ukrnafta has 700 abandoned wells that can be restored and returned to production.

Ukrnafta offers potential investors a deal based on the principles of the Risk Service Agreement (RSA). The investor undertakes to carry out work to restore production - this can be done on its own or through the involvement of “turnkey” contractors. Ukrnafta will exercise operational control.

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

As reported by Ukrinform, Ukrnafta increased the daily production rate of a well in the north-east of Ukraine to 103 tonnes of oil equivalent following hydraulic fracturing.