Ukraine, Schlumberger to Work More Upstream

The upstream subsidiary of Ukrainian state gas entity Naftogaz, Ukrgazvydobuvannya, and US oilfield services company Schlumberger have signed a Memorandum of Understanding to extend their strategic technology collaboration, Naftogaz said October 30.

The agreement covers drilling, hydraulic fracturing, hydraulic stimulation, software development and 3D modelling, as well as the provision of advanced equipment and software solutions. 

The collaboration with Schlumberger will give UGV and Naftogaz access to high-technology solutions to help deliver their goal of producing 20bn m³/year by 2020, which UGV last year estimated would cost $4bn. Last year UGV produced 15.3bn m³, which was up 0.7bn m³ on its 2016 output. This intended output, together independent producers' output, will represent 100% of the country's forecast demand of 26-27bn m³/y in 2030 and do away with costly imports. The company estimates its proven + probable reserves at 276bn m³

During the signing ceremony, the two announced a new contractual agreement for coiled tubing (CT) services, including high-technology services using CT units and engineering support. This three-year contract is valued at $92mn.