Naftogaz attracts international partners for gas production development

Naftogaz of Ukraine NJSC has signed memorandums of understanding with the foreign companies including Dragon Oil from the United Arab Emirates, Azerbaijan SOCAR AQS, and U.S. based Helmerich & Payne, Inc. (“H&P”) as well as 3 Seas Energy.
The announcement is in conjunction with the Ukraine Gas Investment Congress, held in Kyiv on October 20th-21st. These memorandums provide a basis for partnerships, which are planned in the new strategic projects, including the development for the Black Sea areas and tight gas deposits, as well as increasing the production efficiency at the depleted fields.
"Naftogaz is one of the largest gas producers in Europe. We also have some of the most promising gas assets with a total potential of up to 600 billion cubic metres. Company plans for the coming years include the study and development of new areas in the Black Sea, tight and deep gas deposits. The implementation of these initiatives requires over USD 20 billion in investment, and modern technologies that are not sufficiently developed in Ukraine. Therefore, we need to attract partners and investors to implement our plans with the best possible result in the short term. I am grateful to Dragon Oil, SOCAR AQS, 3 Seas Energy and H&P for their willingness to cooperate and, I am sure, this will contribute to the development of all parties," Yuriy Vitrenko, Chairman of the Executive Board of Naftogaz of Ukraine NJSC, said.
Potential cooperation with Dragon Oil is considered for the study and development of the Black Sea areas. This company successfully operates in the Middle East, North Africa, and Central Asia. In particular, Dragon Oil has been operating on the Caspian shelf for 20 years, under the production sharing agreements with the Government of Turkmenistan. During this time it has invested about USD 7 billion in its development. The company has state-of-art field development technologies that ensure an increase in production and reduction of production costs. In particular, it practices directional drilling with a significant inclination, completion of the wells in different horizons, etc.
"The Ukrainian part of the Black Sea today is one of the least explored, and simultaneously, a highly-potential prospect in the region, which can become a powerful source for gas supplies to Europe. We welcome today's signing of the memorandum of understanding with Naftogaz, as we strive to expand the scope of our interests, and look forward to cooperation in the development of oil and gas production in Ukraine and abroad," Ali Rashid Al Jarwan, CEO of Dragon Oil said.
Cooperation with SOCAR AQS, an integrated drilling and well management company, can technologically enhance the development of the Black Sea areas. After all, the partner has extensive experience in drilling on the Caspian Sea shelf and its drilling fleet for operations at sea. SOCAR AQS also has the expertise and technical capabilities to drill in complex onshore areas. This may be useful in the case of upscaling of the projects focused on the development of tight gas, part of Naftogaz's portfolio.
"Such cooperation opens up the new opportunities for business relations and joint assessment of hydrocarbon exploration and production prospects in Ukraine, experience, knowledge, and technologies exchange, as well as for expanding business between Azerbaijan and Ukraine," Samir Mollayev, CEO of SOCAR AQS added.
The collaboration with 3 Seas Energy and H&P will focus on tight reservoir development throughout Ukraine. 3 Seas Energy will also help improve efficiency at the depleted fields through a Product Enhancement Contract (PEC). A mechanism already tested by Naftogaz. H&P, the largest on-shore drilling company in the U.S., will also further develop drilling efficiencies in support of Naftogaz's domestic drilling contractor, Ukrburgaz.
"Although based in the U.S., 3 Seas is reviewing development opportunities around the world. When we look at Europe, we see some of the most interesting opportunities in Ukraine. The country offers a wide and diverse portfolio of oil and gas assets and provides a large domestic market as well as developed export infrastructure. We look forward to growing the partnership with Naftogaz to include millions of cubic meters of gas, which we will look to develop in a manner that focuses on using operational efficiencies and carbon-reduction techniques and practices. All of which will be measured and verified by a third party," said Dariusz Cichocki, President and CEO of 3 Seas Energy and Getka.

For reference

Naftogaz of Ukraine NJSC is the largest energy company in Ukraine, one of the largest players in the gas market of Central and Eastern Europe. Naftogaz is engaged in the exploration and development of oil and gas fields, drilling, transportation and storage of gas and oil, and natural gas supplies to consumers. In 2020, Naftogaz produced 14.23 bcm of gas, which is more than 70% of the total gas produced in Ukraine.

Dragon Oil is an oil and gas company engaged in the exploration, development, and production of oil and gas at the fields on different continents. The company is owned by the Government of Dubai, United Arab Emirates through Emirates National Oil Company Limited (ENOC). The company's principal assets include the Cheleken field on the Turkmenistan shelf, recently acquired GUPCO assets in Egypt, and Block 9 in Iraq. The daily production of Dragon Oil exceeds 140 thousand boe (barrels of oil equivalent) on three assets. The company plans to reach 300 thousand boe by 2026, through the development of existing assets and the acquisition of new prospects.

SOCAR AQS is an integrated drilling and well services management company, established in 2007 by the State Oil Company of Azerbaijan Republic SOCAR, Nobel Oil Services (UK) Limited, and Absheron Qazma LLC (AQS). The company has many years of experience in industrial well drilling, providing advanced technologies and new management methods. SOCAR AQS has been a member of the International Association of Drilling Contractors since 2009.

3 Seas Energy – Based in Tulsa, Oklahoma and operating in the heart of North America’s energy hub, 3 Seas provides a global platform for delivery of energy through; upstream and midstream operations, rail logistics, solar energy, small modular reactors (SMR) technology and EV mobility. 3 Seas Energy is a joint venture between U.S. based Getka Energy Services and Unimot, S.A., of Warsaw, Poland.

Helmerich & Payne, Inc. founded in 1920, Helmerich & Payne, Inc. is committed to delivering industry leading drilling productivity and reliability. H&P operates with the highest level of integrity, safety and innovation to deliver superior results for our customers and returns for shareholders. Through its subsidiaries, the Company designs, fabricates and operates high-performance drilling rigs in conventional and unconventional plays around the world. H&P also develops and implements advanced automation, directional drilling and survey management technologies.

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