Strengthening its own oil service function by updating the fleet of specialized equipment of JSC "Ukrnafta"
Sector
Energy Sector
Stream
Development and production of gas and oil
Project Status
Preliminary Investment Feasibility Study
Entry into Portfolio
State level of SPP
Investment Feasibility Study
Implementation
Completion
- Preparation
- General information
- Strategic Case
- Economic Case
- Financial Case
- Management Case
General information
Description of the project
The project involves a comprehensive renewal of the fleet of specialized equipment for providing oilfield services and ensuring a stable hydrocarbon production process. The special equipment to be replaced includes specialized fleets for OFS, cranes, buses, bulldozers, tractors, trucks and tankers, excavators, fire engines, loaders, etc.
The purpose of the project
Main goal:
Increasing compliance with modern standards
Secondary goal:
Increasing compliance with modern standards, Improving the quality of services
Description of the purpose of the project and ways to achieve it
Currently, the percentage of fulfillment of applications for the provision of transport and special equipment by the service function of JSC "Ukrnafta" is 90%. But if all available equipment of Soviet/Russian production fails due to the lack of spare parts, the percentage of fulfillment of applications will not exceed 30%, which will have a catastrophic impact on the stability of hydrocarbon production. The business unit of the Transport Department and the Oilfield Services Department of JSC "Ukrnafta" within the framework of the medium-term strategy has prepared a list of equipment for renewal in the coming years with the complete replacement of completely worn-out equipment in the amount of more than 650 units for the amount of about 130 million USD. Special equipment to be replaced includes specialized fleets for OFS, cranes, buses, bulldozers, tractors, trucks and tank trucks, excavators, fire engines, loaders, etc.
Problems and solutions resulting from project implementation
The key objectives of the project are:
1) updating and maintaining existing processes;
2) gradual replacement of worn-out equipment manufactured in the Russian Federation and the Russian Federation to meet production needs;
3) timely execution of requests for the provision of transport to meet various production needs.
Socio-economic context
Indicator
Value
Other functional
100 %
Strategic Case
Strategic feasibility of the project
Sector
Energy Sector
Subsector
Oil and gas industry
Stream
Development and production of gas and oil
Strategic document
Energy Strategy of Ukraine until 2050
Task
Increasing domestic production of natural gas and oil by intensifying geological exploration, introducing modern drilling and production technologies, optimizing the development of hydrocarbon deposits, as well as developing the infrastructure for storing, transporting and processing hydrocarbons in order to increase Ukraine's energy independence and security.
Project objectives
Indicator
Base value
Target value
Execution of applications from structural units for oilfield services
90 %
100 %
Demand for the service and its dynamics
Indicator
Year
Demand
Annual demand for services/infrastructure
1
100 %
Economic justification
Alternative technical solutions
Technical Solution 1
Renewal of the specialized equipment fleet of JSC "Ukrnafta" through procurement
Technical Solution 2
Procurement of services from external contractors for relevant work
Total costs6'530'000'003 UAH4 UAH
Average annual costs1 UAH1 UAH
Project duration, incl.30 months27 months
Service life120 months12 months
Target indicatorsDefined Not defined
Technical Solution Status
Active
Pending
Financial justification
Total project budget
Total preliminary budget6'530'000'003 UAH4 UAH
Capital costs6'530'000'003 UAH4 UAH
Operational costs0 UAH0 UAH
Preliminary cost breakdown
Operating costs for implementation0 UAH0 UAH
For preparation1 UAH1 UAH
For implementation6'530'000'000 UAH1 UAH
For operation1 UAH1 UAH
For closing1 UAH1 UAH
Average project cost per service recipient
Service UnitN/A
Service Unit Cost1 UAH
Profitability of the project
Is the project expected to generate income?
ResponseNoNo
Project Financing Mechanisms
Are funding sources and mechanisms identified?
Source and MechanismYesNo
Management Rationale
Risk assessment
Financial riskDefinedUndefined