In 2016, Ukraine produced 20.1 bcm of gas against 19.9 bcm in 2015 (+1%).
UGV, a 100%-owned subsidiary of Naftogaz, produced 14.6 bcm of gas (73% of Ukraine’s total). The amount includes JV production and gas used for the company’s operating needs.
In 2016, UGV increased its output by 0.1 bcm (0.7%) compared to a 0.6 bcm drop (-4%) in 2015. The company managed to stabilize its production thanks to the measures implemented in line with the 20/20 Strategy, which envisages a growth in output to 20 bcm by 2020.
The regulated price for the gas produced by UGV increased up to UAH 4849/tcm on 1 May 2016. This, along with a number of organizational and technical measures, enabled the company to intensify production drilling and optimize field development. With a significant increase in new licenses received in 2015 and 2016, the company boosted exploration.
All marketable gas produced by UGV, excluding JVs and operating needs, is purchased by Naftogaz at a price of UAH 4849/tcm and further sold at UAH 4942/tcm to cover demand of households. Gas prices and supply procedures for the protected categories are regulated by the Cabinet of Ministers of Ukraine.
Chornomornaftogaz, a 100%-owned Naftogaz subsidiary which re-registered in Kyiv following the occupation of Crimea by the Russian Federation, accounted for approximately 10 mcm of gas produced at Strilkove field, which supplies Henichesk town in Kherson region.
In 2016, Ukrnafta, 51% of which is owned by Naftogaz, decreased its gas production by 13%, from 1.5 bcm to 1.3 bcm.
Private producers expanded their output levels by 8% last year, from 3.9 to 4.2 bcm.
Note: Numbers may not add up due to rounding.