OkhtyrkaNaphtoGaz, Oil and Gas Extraction Administration of Ukrnaphta, OJSC

General Director – S. Naslednikov

Oil and gas production administration “Okhtyrkanaftogas” of JSC “Ukrnafta” provides 50% of oil production and 6% of gas production in Ukraine at present.
These achievements have been got due to our own strategy of development being based upon four factors:

- increase of natural resources utilization intensity due to introduction of scientific and technical progress achievement
- a considered personnel policy;
- measures for improvement of ecological safety;
- sponsor and philanthropic activities.

Hydrocarbon resources increase at high rates over the areas being exploited. When annual average increase of oil and gas as a whole in Ukraine has been 82.1 t of equivalent fuel per 1m of drilling, for the region of our company's works it has been 190 t of equivalent fuel per 1m. Only during the recent years due to concentration of geological prospective drilling volumes 45% of all increases of reserves in JSC “Ukrnafta” have been obtained here.

At present the company uses the latest equipment and production technologies which should provide intensification of oil and gas production in future. Due to their utilization there were produced 206 thousand tons of oil and 44 million m3 of gas in 1998, which amounted to 13.3% and 4% for the annual production of oil and gas, respectively, with the profit being 23 million grivnas.

We are open for cooperation and are sure that future investors will have reliable and foreseen partners on our side with great potentialities.

Leading place

The industrial activity of oil & gas production administration “Okhtyrkanaftogas” is connected with production, industrial processing, transportation of hydro carbon production and construction of objects for oil & gas production.
Oil & gas production administration “Okhtyrkanaftogas” of JSC “Ukrnafta” provides 50% of oil and 6 % of gas in Ukraine today. This enterprise is a part of openned joint-stock company "Ukrnafta".

Volume of work.

Oil & gas production administration “Okhtyrkanaftogas” executes development of 26 oil and gas wells located on territory of four regions: Sumy, Kharkiv, Poltava, Chernigiv.

Main oil & foulgas wells are Anastasiev, Bugruvativ, Korzhev, and South-Panasov. There is producing 888 000 t of oil or 67% from the total volume of production of oil at the OGPA “Okhtyrkanaftogas”at 1999. Total volume of drilling is more than 90 000 m year. 28 boring installations are at work today. The production of oil, gas and condensate is provided with operational fund from 490 wells, including 262 oil, 82 gas, 66 forcing, 64 watercollective, 16 absorptive. Besides there are 52 observant slits. Common length of industrial pipelines reaches 1000 kms.

The mean debit of oil of one slit at oil & gas production administration “Okhtyrkanaftogas” makes 18 tday, at mean at JSC “Ukrnafta” 3,5 tday.
The production of oil at the OGPA “Okhtyrkanaftogas” implements by gushered (60 wells) & gaslifted (52 wells) ways; besides that at 139 wells work jerker depth pumps (JDP), at 11 wells there are electrocentrifugal pumps (ECP).

Separated extracted gas partially makes dispositions in industrial conditions and delivers to the users by its own pressure. The large part of gas (88 %) makes dispositions for transportation by compression at Kachaniv and Gnidetznevsk GPP. The existing system of preparation provides a high level of use the resources of foul gas. In 1999 it was 98%.

The tank gas delivers to the population, municipal-household and budget organizations, and also to the industrial users by their own system of gas pipelines and system of trunk gas pipelines "Uktrans gas". The total volume of deliveries of gas in 1999 was 1116,8 mln.m3. Deliveries were ordered to the users of Sumy Kharkiv, Poltava, Chernigiv, Cherkassk, Dneptopetrovsk, Donetsk, Kiev regions.

Use of new achievements of science and engineering

Today the newest technologies are used at the enterprise,for futher supply of intensification of oil & gas production.
They are:
- Hidrichloric-acid, clay-acid and tinning-acid processing of predint zones of straums;
- Use of surface - active substances;
- Clearing of predint zones of straums with the help of special devices;
- Insulatiing works with use of special tamponade reactants;
- High-power hydrogaps of straums;
- Termobarichemical processing of predint zones of straums;

In total at the expense of use of the newest technologies and engineering in a 1999 is extracted 42000 t of petroleum and 12 mln.m3 of gas.

Care of staff

The important factor of the development of the production is the suspended personnel selection of the enterprise. Socio-economic changes of the last decade has not almost affected the personnel structure of the OGPA “Okhtyrkanaftogas”.

Managers are the experts of high qualification have wide experience of activity in branch. 64 % from them have higher education, 36 % - mean special derivation. 7 % of the chiefs and experts is a youth by age till 30 years, 12 % - till 35 years. The structure of the experts is annually filled up at the expense of the graduates, greater part from, Ivano-Frankovsk technical university of petroleum and gas.

The training to working trades and retraining of the workers implements on industrial practice combines. So, during 1999 607 persons were trained. The chiefs and experts pass improvement of professional skill at courses and seminars at higher educational establishments of Ukraine.

Priority direction of activity.

The outcomes of the ecological control testify, that during the activity of the enterprise completely adheres to the appropriate spefications. The contents of polluting substances in scraps of the enterprise in 1,2 - 1,5 times below than normatively permissible levels installed by State committee on protection of nature.

The reduction of negative influence of the oil & gas extracting is for the enterprise one of the priority directions of activity. The example of such fruitful activity of the OGPA “Okhtyrkanaftogas” - can be served with organization and protection of Huhra hydrological reserve. It is a unique territory, on which the marsh, wood and meadow landscapes are integrated, live the numerous kinds of flora and fauna.

Okhtyrski oil &gas production region belongs to the most perspective regions in Ukraine.

Perspectives for the investments

Rich reserves of hydrocarbon

The prospecting activities of the last years have confirmed high perspective of the region for the futher work of the OGPA “Okhtyrkanaftogas”, the certificate of is the high rates of hydrocarbon reserves on the developed areas. When annual average imcrease of oil & gas as a whole in Ukraine has been 82.1 t of equivalent fuel per 1 m of drilling, for the region of activities of the company it has been 190 t of equal fuel per 1m.

On Okhtyrka oil & gas fields there are 197 design wells (31% of the quantity JSC “Ukrnafta”) with volumes of development drilling 1085 000 m (35,6 % from the total volumes of JSC “Ukrnafta”).
Perspectives for prospecting of the openned wells are : West-Kozevsky, West-Rybalsky (depth), East-Rogintsevsky and West-Kachanivsk, Bugryvativ, Huhra, Radyanske, Yasenevske. The resources of hydrocarbon here make 8,58 mln.t.
Prospecting activity is also concentrated on the new highly perspective areas: Mityaev-Ovinsk (2,2 mln. t), Ivanivsky (1,5 mln.t), Verbivsk (1,2 mln.t), Ryzinsky(1,4 mln.t incl.Trostyanets – 1,0 mln.t), Ostafiivsk (1,67)mln.t. Perspective are also Zholobkivska (1,5 mln.t), Cheremchivsk
(1,0mln.t), Korzhyvsk (“depth” 5mln.t), Anastasievsk (“depth” 2,5 mln.t) areas.

Besides a significant reserve is the reserve of highly tought oil at Bugruvativ well, which is 37 mln.t. For their production it is necessary to pumping of hot water into the stratums with the purpose of PPT.
According to thecounts of the experts enterprise installed potential will provide stable production of oil at a level 2 - 2.5mln.ty during 50-60 years.