18:16 07.09.2017

Ukrgazvydobuvannia signs contracts with Chinese Xinjiang Beiken to drill 24 wells

Ukrgazvydobuvannia signs contracts with Chinese Xinjiang Beiken to drill 24 wells

PJSC Ukrgazvydobuvannia has signed contracts with Xinjiang Beiken Energy Engineering Co. (China) to drill 24 new wells in Poltava and Kharkiv regions, the company's press service reported.

The drilling operations will begin in the fourth quarter of 2017.

The total value of the signed contracts is UAH 1.934 billion (including VAT).

As reported, Ukrgazvydobuvannia in late October 2016 announced a tender to attract external contractors for drilling operations in Kharkiv and Poltava regions with a total expected value of up to UAH 13.036 billion (VAT included).

As of September 7, it had selected the winners for 11 out of 15 lots of the tender. At the same time, 3 out of the 15 lots (Nos.11, 13 and 15) were canceled, as the company rejected all bids of the companies participating in the tender.

Ukrgazvydobuvannia has not yet decided on lot No. 2. Initially, the company named Poltava Services (renamed Exalo Drilling Ukraine, a subsidiary of PGNIG) as the winner of the lot, but later canceled the decision. Currently, only one bid - that from Croatia's Crosco Integrated Drilling & Well Services for UAH 480.98 million - it waiting for the company's decision.

The contracts have already been signed with OOO Spetsmekhservis (lot No.1, May 29), Crosco (lots Nos. 8 and 10, June 7 and July 12) and Xinjiang Beiken (lots Nos. 4, 5, 7, 12, September 5).

Contracts with Poltava Services (lots No. 3, 6, 9, 14) are expected to be signed.

Ukrgazvydobuvannia plans to boost gas production from 14.5 billion cubic meters (bcm) in 2015 and 2016, to 15.2 bcm in 2017, 16.5 bcm in 2018, 18.3 bcm in 2019, 20.1 bcm in 2020.

Its investment in drilling and purchase of new equipment in 2017 will be UAH 30 billion. In 2017, it is to drill about 100 new wells and repair 500 existing wells.

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