BRIEF BACKGROUND.
Industrial oil extraction in Western Ukraine began as early as 1771 in Kolomyya region (the Sloboda-Rungurske field). In 1909, Halychyna (Western Ukraine), which then was a part of Austria-Hungary, was the world's third-largest oil producer, behind only Russia and the USA
World Wars I and II almost halted the development of the oil and gas industry in the region. During the post-war period (1950s-1960s), the Soviet Union began to actively develop exploration and extraction in the region. As a result, the largest oil and gas fields in the West Ukrainian region were discovered, namely Hidnovytske, Uherske, Bilche-Volytske, Rudkivske gas fields, Boryslavske, Bytkiv-Babchenske oil and gas condensate fields, Dolynske oil field etc. This contributed to the growth of hydrocarbon extraction, which peaked in the late 1960s at 2.86 million tonnes of oil (1967) and 12.7 billion cubic metres of gas (1969). The majority of identified hydrocarbon deposits are concentrated within the Pre-Carpathian Depression and are confined to the traditional reservoir rocks within structural-lithological traps located between 500 and 3,000 metres beneath the surface. Most of the fields are still being developed today. The remaining explored hydrocarbon reserves of the Pre-Carpathian Depression fields (according to Ukrainian State Geological Exploration Institute (UkrSGEI) estimates as of 01.01.2016) amount to more than 183 million tonnes of fuel equivalent.
In the 1970s–1980s, a number of hydrocarbon deposits at depths over 4 km were discovered in the Western Ukrainian region, namely Pasichnianske, Semyhynivske, Novoskhidnytske oil deposits, which are confined to the third stage of allochthonous structures of the Pre-Carpathian Depression as well as the significant Lopushnianske oil deposit in the native complex of the Carpathian underthrust (Chernivtsi Region), which has unambiguously proved the promising potential of prospecting for hydrocarbon deposits in the deep submerged horizons of the Pre-Carpathian Depression and the Skyba zone of the Carpathian Mountains. However, at that time in the Soviet Union the oil and gas assets in Western Siberia were being rapidly developed, while Western Ukraine remained on the side-lines, so it was impossible to study and exploit reserves in detail. During the years of independence, the same trend persisted - the lack of funding, the lack of attention to own production, gas and oil were bought from Russia. On the other hand, history may have preserved this resource potential for this exceptional wartime situation.
So, the resource potential of the Western Ukraine oil and gas bearing region is 596 million tonnes of fuel equivalent, the remaining prospected hydrocarbon reserves amount to over 195 million tonnes of fuel equivalent with cumulative hydrocarbon production exceeding 424 million tonnes of fuel equivalent. In other words, there is a great potential to increase industrial production of hydrocarbons in the region, which can meet the domestic consumption of hydrocarbons in Ukraine and their export to European countries.
NOW, MORE DETAILS ABOUT WHO WE ARE.
The group dates back to 2004 having grown from a small team of 10 to 1200 employees.
Over this time, it has accumulated considerable experience in oil and gas exploration and extraction and has formed a highly professional team of geologists, geophysicists, drillers and construction workers. Today, it is a vertically integrated company covering the whole range of activities ranging from the analysis of geological materials, prospecting seismic works with subsequent data processing and interpretation up to drilling vertical, directional and horizontal wells, string fastening, industrial well surveys, construction of gas pipelines, gas treatment facilities and their connection to main gas pipelines as well as gas sales.
Our companies have experience of cooperation and joint activities in well drilling with RAG (Austria), Hydro Drilling (Italy), receiving services and cooperation with Weatherford (USA), from which two deep well drilling rigs with lifting capacity of 340 tonnes for well cementing have also been purchased, the cooperation with Halliburton (USA), Schlumberger (France), joint activities with MND (Czech Republic) have been successfully run since 2014.
For the recent 4 years our Drilling Company provided well workover services, coiled tubing operations for UkrGazVydobuvannya State Company, for Ukrnafta PJSC we have rendered services of geophysical surveying using gyroscopic inclinometer. For Expert Petroleum (Romania) we have conducted seismic surveys and well workover services, repairs of compressor stations and set-up of gas treatment facilities; we have drilled wells for Nafta (Slovakia).
Since 2016, ZNS Group has been closely collaborating with Ivano-Frankivsk National Technical University of Oil and Gas. Most of the employees are graduates of the University and they undertake advanced training courses. The Group welcomes students for work placements. Joint scientific and practical conferences are arranged. Laboratory specialists from Ivano-Frankivsk National Technical University of Oil and Gas are engaged by ZNS Group to carry out environmental monitoring activities. At the same time, we jointly develop innovative solutions and improve business processes which are an important part of the Group's activity.
Over the past few years, our Group has been among the most dynamically developing companies in the oil and gas sector in Ukraine.
Over the period from 2014 to 2021, we increased the output 20-fold (from 12.93 million cubic metres of gas per year in 2014 to 280 million cubic metres per year in 2021). In terms of gas extraction results in 2021, the Group was ranked the 5th among private gas extraction companies in Ukraine.
A special recognition can be given to a company from our group, WELL CO LLC, which participated in tender for the conclusion of an agreement on the distribution of hydrocarbons within the Ugnivska area located within the Lviv and Ivano-Frankivsk Regions with a total area of 967.44 square km, which was announced on 28 February 2019 in accordance with the Resolution of the Cabinet of Ministers of Ukraine dated 18.12.2018 under No. 1189.
According to the results of the tender WELL CO LLC was recognized as the winner and granted the right to conclude an agreement with the Cabinet of Ministers on the distribution of production for the Ugnivska area for the purpose of geological study, including development, with subsequent extraction of combustible minerals (natural gas, gas shale deposits, gas of the central-basin type, gas (methane) of coal deposits, oil, condensate) (collectively – hydrocarbons), and the execution of works stipulated by the agreement on product distribution for a term of 50 years (with the possibility of extending the term) established by the Law of Ukraine "On Production Sharing Agreements".
The Ugnivska area is located within Sokal, Mostyska, Yavoriv, Sambir, Staryy Sambir, Turka, Stryy, Horodok and Mykolaiv Districts of Lviv Region and Bogorodchany District of Ivano-Frankivsk Region. The total area of the licensed sites owned by the Group is 2,122 km2.
The total area of licensed areas owned by the Group is 2122 km2.
.png){kind=logo}
