The company increased natural gas output by 6.5%, reaching 1.170 billion cubic meters compared to 1.097 billion cubic meters in 2023. Oil production rose modestly by 0.6%, totaling 1.418 million tons compared to 1.410 million tons in 2023. These figures represent a total increase of 70.5 thousand tons of hydrocarbons, or 3%, in oil equivalent.
Key Factors Behind Production Growth
Despite facing prolonged power outages, which hindered mechanized oil extraction, Ukrnafta effectively mitigated natural production declines and exceeded its targets. According to Serhiy Koretsky, the company's director, this marks the second consecutive year of improved production indicators.
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Modernization and Drilling:
Ukrnafta plans to continue drilling new wells in 2025, upgrade outdated Soviet-era equipment, and invest in modern technologies from global leaders to further enhance production. -
Energy Resilience:
The company has focused on building operational resilience, even amid energy challenges and infrastructure constraints.
Expansion of Operations
Ukrnafta not only leads in oil and gas production but also operates a robust network of gas stations. Following its entry into Glusco asset management in March 2024, the company now manages 547 gas stations, including 462 owned and 85 under management. Key initiatives include:
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Network Modernization:
Ukrnafta is implementing a comprehensive program to restore and upgrade its gas station network. -
Innovative Payment Solutions:
The company launched fuel coupons and NAFTACard cards in February 2023, facilitating efficient fuel purchases for both individuals and businesses.
Strategic Assets and Shareholding
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Production Permits:
Ukrnafta holds 92 special permits for industrial deposit development and manages 1,832 oil wells and 154 gas wells. -
Ownership:
The majority shareholder is NJSC Naftogaz of Ukraine, holding a 50% + 1 share stake. -
State Control:
In November 2022, a significant share of the company's corporate rights was transferred to the state, under the management of the Ministry of Defense, to support national security interests.
Future Outlook
Looking ahead, Ukrnafta is poised to:
- Expand production capabilities by drilling additional wells and adopting advanced equipment.
- Strengthen Ukraine’s energy security by ensuring stable domestic production.
- Drive economic growth through continued investments in infrastructure and technology.
Ukrnafta's steady growth underscores its pivotal role in Ukraine’s energy sector, particularly during challenging geopolitical and economic times.
