Company performance results for 9 months

Production Results Analysis

Ukrnafta produced 1121.8 ktonnes of oil and condensate and 832.8 million m³ of gas in the first 9 months of 2021, having exceeded the approved production plan by 2.7% and 10.4%, respectively. Average daily production of oil and condensate has shown growth since the beginning of the year. In September, average daily oil and condensate production came to 4,18 ktonnes, a 4.8% increase compared to January. The daily average natural gas output in September reached 3.15mln m³, which is 7.1% more than in January.

Ukrnafta managed to increase its average daily output by improving operating efficiency while working on the existing well stock: switching to new productive horizons, optimising workovers and maintenance of prospective wells, and replacing critically worn-out equipment. In the first 9 months of the year the company completed workover operations on 113 wells, put 58 wells out of operation, performed 13 stimulation jobs (including 3 hydraulic fracturing jobs) and performed 16 operations without a workover crew (4 made with a coiled tubing unit). Thanks to organizational and technical measures, 125.2 ktonnes of oil and condensate and 79.1 million m³ of natural gas were additionally produced.

Fiscal discipline

Ukrnafta continues to meet its current tax obligations in full. The company paid UAH 10.1bln in taxes in the first 9 months of the year. This amount included the rent for subsoil use, VAT, excise duty and other taxes.

The state and local budgets of various levels received UAH 5.88 bln of royalties for the use of subsurface resources. According to the rent sharing mechanism, established by law, the oblasts, raions and local communities' budgets will receive UAH 294 mln. The largest revenues from Ukrnafta's rent will go to the budgets of Sumy, Ivano-Frankivsk and Poltava regions.

Rent revenues to budgets of oblasts, raions and local communities, mln UAH