PJSC Ukrnafta is starting a revitalization program and invites investors to restore the first 20 wells.

“An important part of the company’s strategy to increase production is the restoration of already drilled but abandoned wells that have prospects through the use of modern technologies,” the company said in a press release, citing Ukrnafta director Serhiy Koretsky.

There are currently 4,222 such wells identified, of which 2,100 are within the limits of Ukrnafta’s special permits, of which 700 are within the reserve contours.

“For the pilot, the company has selected 30 wells out of these 700. Ten of them will be restored on its own, a competition is being announced for 20. The company is inviting partners who will help restore production at these sites by drilling horizontal lateral trunks,” the document explains.

The company offers an agreement based on the principles of the Risk Service Agreement, under which the investor must undergo compliance and gain access to the Virtual Data Room with information about the well.

Ukrnafta, for its part, together with specialists, is forming a pool of wells, from three to 12, which will be restored through drilling at the expense of partners. The cost of restoring production from wells is determined through appropriate bidding in the ProZorro system.

In the future, Ukrnafta receives additional resources and pays for revitalization using funds from production from restored wells. The partners, for their part, receive a portion of the additional production from the restored wells.

“Any Ukrainian and international company that goes through the compliance procedure can join,” the company clarified.