Public joint-stock company Ukrnafta in 2015 saw a 10.5% fall in oil production, to 1.577 million tonnes, the company's press service has reported.

The press service said that gas condensate production fell by 25.3%, to 93,300 tonnes.

Gas production decreased by 13.5% in 2015, to 1.503 billion cubic meters, including a decline of 18.5% in natural gas production, to 1.05 billion cubic meters.

Ukrnafta said that the main reason for the fall in production is the natural decline in fields' yield, which was accompanied by small investment into drilling of new wells and workover of wells last year. Total investment reached UAH 550 million.

"2015 was challenging for the oil and gas industry worldwide. The major decrease in oil prices caused instability and consequent reduction in investment. Ukrnafta was not able to invest enough to arrest the natural decline of its production base," the company said, citing Board Chairman Mark Rollins.

He said that Ukrnafta’s preliminary budget for 2016 stipulated investments in amount of UAH 1.3 billion. This will allow to place on production a number of new wells and to maintain productive capability of the existing ones.

"The investment program will be kept under review and increased in the case that world oil prices improve over the course of the year," the company said.

In January 2016, the company produced 123,300 tonnes of oil, 6,450 tonnes of gas condensate, 114.42 million cubic meters of gas, including 79.5 million cubic meters of natural gas.