Purchase of KRS machines to increase the efficiency of capital repairs by our own forces and expand the operational well fund


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 the purchase of 30 new KRS machines (65 tons - 26 units, 125 tons - 4 units) to increase the efficiency and complexity of performing current and major repairs of wells, which is a necessary condition for the implementation of the Company's strategic goals of increasing oil and gas production.

The purpose of the project

Main goal:

Capacity building

Secondary goal:

Increasing compliance with modern standards, Increasing compliance with modern standards, Creation of new facilities and services, Improving the quality of services

Description of the purpose of the project and ways to achieve it

The project involves the purchase of 30 new KRS machines (65 tons - 26 units, 125 tons - 4 units) to increase the efficiency and complexity of performing current and capital repairs of wells, which is a necessary condition for the implementation of the Company's strategic goals of increasing oil and gas production.

Problems and solutions resulting from project implementation

The goal of the project is to increase the efficiency and complexity of performing routine and capital repairs of wells, which is a necessary condition for implementing the Company's strategic goals of increasing oil and gas production.

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
Fulfilling requests for well overhauls and services to other companies in the industry
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

Purchase of 30 new KRS machines (65 tons - 26 units, 125 tons - 4 units)

Technical Solution 2

Procurement of services of an external contractor for conducting RRC

Total costs1'407'000'003 UAH4 UAH
  • For preparation
  • 1 UAH1 UAH
  • For implementation
  • 1'407'000'000 UAH1 UAH
  • For operation
  • 1 UAH1 UAH
  • For closing
  • 1 UAH1 UAH
    Average annual costs1 UAH1 UAH
    Project duration, incl.24 months13 months
  • Deadline for developing a FFS
  • 12 months1 month
  • Implementation period
  • 12 months12 months
    Service life360 months12 months
    Target indicatorsDefined Not defined
    Technical Solution Status
    Active
    Pending

    Financial justification

    Total project budget

    Total preliminary budget1'407'000'003 UAH4 UAH
    Capital costs1'407'000'003 UAH4 UAH
    Operational costs0 UAH0 UAH

    Preliminary cost breakdown

    Operating costs for implementation0 UAH0 UAH
    For preparation1 UAH1 UAH
    For implementation1'407'000'000 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