Ukrnafta maintains production levels, increases light oil product sales by 49% in Q1 2026 – CEO

In January-March 2026, despite shelling of infrastructure, damage to equipment, and power outages that significantly impacted the mechanized fund, Ukrnafta JSC maintained hydrocarbon production volumes at the same level as in the same period in 2025.

This was announced by the company's Chairman of the Board, Bohdan Kukura, following a meeting with the Supervisory Board (SB) of Ukrnafta, at which the company's performance in the first quarter was summarized.

"The additional impact of operational and technical measures—well overhauls, stimulation, optimization, and hydraulic fracturing—provided more than 22,000 tonnes of additional oil and 8.2 million cubic meters of gas," he wrote on his Facebook page.

The head of Ukrnafta highlighted the improved reliability of the mechanized well system as a separate achievement. Specifically, thanks to the use of modern pumping equipment from American Baker Hughes, German Oil Dynamics, and Saudi Arabia's Alkhorayef, as well as comprehensive upgrades to pipes, cables, and corrosion protection systems, the wells' turnaround time has been extended.

"The retail sector also continued to grow: sales of light petroleum products increased by 49% compared to the first quarter of 2025. Specifically, gasoline spills increased by 31%, and diesel fuel by 75%," Kukura noted.

He and members of the Supervisory Board visited production units in western Ukraine, which, despite difficult operating conditions, are achieving positive dynamics: plus 5% for oil and plus 9% for gas.

"We worked at one of the company's youngest and most promising assets – one of the highest oil and gas production facilities in Europe, at an altitude of over 1,000 meters above sea level," Kukura wrote.

He explained that working in such conditions requires complex engineering solutions. Beginning in 2024, the team equipped the facility with compressor units, which increased oil production by 185% and gas production by 147%.

"Currently, 19 wells are operating there: 18 oil wells and one gas well. Five of them were built after 2024 and are demonstrating flow rates two to three times higher than average thanks to modern pumping equipment and stimulation measures," the head added. The next stage, he added, is new drilling and reconstruction of the hydrocarbon collection and transportation system.

A separate strategic focus is increasing the company's knowledge-intensive operations.

According to Ukrnafta, the company's research and design institute forms the foundation for technological development: nine new and eight existing 3D field models have been created, two test models of oil and gas systems have been launched, and the data collection cycle for creating digital twins has been automated. Thanks to new laboratory equipment, the company has significantly enhanced its analysis of reservoir fluid properties – while previously the company assessed approximately seven parameters, it now does so in excess of 20.

In turn, the Supervisory Board of Ukrnafta positively assessed the results that the company is achieving in extremely difficult conditions.

Ukrnafta CEO Timothy Dodson noted that the company demonstrates the resilience of its operating model, a systematic approach to development, and the ability to adapt to unprecedented challenges.

According to him, it's important that, in parallel with ensuring stable operations, the team continues to invest in technology and build a foundation for long-term growth.

By the end of 2025, Ukrnafta achieved revenue of UAH 99.6 billion, paid UAH 28.8 billion in taxes, and transferred UAH 5 billion in dividends to the state.

JSC Ukrnafta is the largest oil producing company in Ukraine, which carries out a full cycle of activities in the field of production: exploration, production of oil and gas, provision of oil industry services, as well as management of the largest network of filling stations in Ukraine UKRNAFTA.

The company operates over 1,106 oil and 131 gas wells.

Ukrnafta's shareholders are Naftogaz Ukrainy and the Ministry of Defense of Ukraine. Since 2022, the company has been under state control and is undergoing a large-scale business transformation.

The UKRNAFTA network of petrol stations is the largest in Ukraine, with nearly 700 locations and a top-three ranking in terms of fuel sales. The UKRNAFTA brand consolidates networks previously operating under the Glusco, Shell, and U.Go brands.