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

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
  • For preparation
  • 1 UAH1 UAH
  • For implementation
  • 6'530'000'000 UAH1 UAH
  • For operation
  • 1 UAH1 UAH
  • For closing
  • 1 UAH1 UAH
    Average annual costs1 UAH1 UAH
    Project duration, incl.30 months27 months
  • Deadline for developing a FFS
  • 6 months3 months
  • Implementation period
  • 24 months24 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