international magazine
03-03-2019 15:23


The leader of Ukrainian gas production, the state-owned company Ukrgazdobycha, which is part of the national holding NAK Naftogaz of Ukraine, suffered production loss, despite earlier reports of production growth. “Although the company announced production growth in 2018 to 15.495bn m3, the volume of commercial gas was only 13.8bn m3, which indicates a record loss of 1.5bn m3, and the volume of commercial gas in 2018 actually decreased by 800mn m3”, - Popular Ukrainian natural gas production expert Ilya Rybchich, former Ukrgazdobycha CEO, who led the company three times in the 20th and 21st centuries, stated in the interview to Ukrainian web portal Glavkom.

In particular, Ilya Rybchich stated that the production and technological losses of the natural gas in the UGD should amount to 550mn m3 of gas, and not 1.5bn m3, which were indicated in the statistics of JSC "Ukrgasdobycha".

“When I looked at the production and technological losses (PTL) for the company at 1.5bn m3 of gas, I was surprised. What kind of mismanagement is this with such losses? Let me explain with a simple example so that everyone can understand how much is 1.5 bn m3 of gas? Today, Ukrgasdobycha extracts some 1,250bn m3 per month. Hence, this means that all the 2,500 production wells of the company were torched, and they burned somewhere in the fields for a month. Or here’s another good illustration, it can be compared with failing to supply {All Ukraine’s – OM} utilities with the natural gas in one winter month, ” added Mr. Rybchich.

On 28 February during the Adam Smith Ukrainian Energy Forum, OILMARKET asked the heads of production and drilling services of Ukrgazdobycha to comment on such record losses, however, the leaders refused, citing the fact that it was beyond their competence. Sources in the company indicated that the head of the gas division of NAK Naftogaz Ukraine, Andrew Favorov, pledged to answer this sensitive question.