Ukrainian gas producer Burisma eyes 1.8 Bcm output in 2017, up 64%

March 30, 2017

London (Platts)–29Mar2017/913 am EDT/1313 GMT

* Ramping up investments in upstream this year
* Sells gas to industrial enterprises in Ukraine
* Burisma aims to support Ukraine energy security

PLATTS_BURISMA

Ukrainian gas producer Burisma is targeting output of 1.8 Bcm in 2017, which would be a hefty 64% increase on last year’s 1.1 Bcm, the company said. Burisma — founded in 2002 and how holding 25 production licenses in Ukraine — is planning spending of more than $100 million on drilling new wells this year to reach its production target.

There are a number of independent gas producers operating in Ukraine, helping the government achieve its goal of reducing dependence on gas imports.

“[Burisma] is continuously investing in the development of new wells and¬†contributing to Ukraine’s energy independence,” Vadym Pozharskyi, adviser to Burisma board of directors, said in a statement.

Ukraine’s domestic gas production has been flat at around 20 Bcm/year for more than a decade, but it still has vast undeveloped gas resources, including both conventional and unconventional plays.

Fellow independent, UK-listed JKX Oil & Gas, believes North American technology could give Ukraine’s stagnant upstream gas sector a major boost, even turning the country into a net exporter of gas to Europe in the future.

JKX CEO Tom Reed said earlier this year there could be more than 20 gas fields in Ukraine — including its own Rudenkivske field — that, with the right technological approach, could boost Ukrainian domestic gas output to 40 Bcm/year from the current 20 Bcm/year. Burisma’s Pozharskyi also said the key to success lies in technology and innovation.

“We will be bringing the latest equipment into the Ukrainian E&P sector already in 2017, raising the bar for other independent gas producers in the country,” he said.

Burisma has already put one new production well into operation this year –¬†a directional well drilled to 2,900 meters at the Proletarske field. In total, Burisma is going to drill another 20 wells by the end of the year.

Burisma said it supplies gas to over 100 different industrial enterprises in Ukraine. Contractual terms with both public and private companies depend “solely on market conditions, following the principles of economic viability,” it said.