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 %

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

Аналізувались дані АТ "Укрнафта" та частка виконаних заявок, порівняння вартості та швидкості виконання робіт по КРС

Has data from external sources been used in the demand assessment?

No

Does the demand forecast take into account the latest demographic and economic forecasts?

No
Indicator
Year
Demand
Annual demand for services/infrastructure
1
100 %
Economic justification

Analysis of the project's impact on ecology and climate change

Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?

Transition to a circular economy
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change adaptation
[Response was provided in the Preliminary Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Sustainable use and protection of water and marine resources
[Response was provided in the Preliminary Investment Feasibility Study]
Protecting and restoring biodiversity and ecosystems
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Preliminary Investment Feasibility Study]

Is the proposed project expected to significantly harm any of the following climate or environmental objectives?

Protecting and restoring biodiversity and ecosystems
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change adaptation
[Response was provided in the Preliminary Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Transition to a circular economy
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Preliminary Investment Feasibility Study]
Sustainable use and protection of water and marine resources
[Response was provided in the Preliminary Investment Feasibility Study]

Project sustainability and inclusivity

Identify potential gender risks of the project and indicate possible ways to overcome them:

The project may result in the forced displacement of women, men and other gender groups or loss of access to resources
[Response was provided in the Preliminary Investment Feasibility Study]
Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
Other gender risks
[Response was provided in the Preliminary Investment Feasibility Study]
There are risks of impaired mobility or safety for women, men and other gender groups during construction/operation
[Response was provided in the Preliminary Investment Feasibility Study]
There is a risk of reduced economic opportunities for women, men and other gender groups (e.g. loss of jobs or retail outlets)
[Response was provided in the Preliminary Investment Feasibility Study]

Does the project provide for improving women's access to services?

Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
Other benefits from project implementation
[Response was provided in the Preliminary Investment Feasibility Study]
Envisaged training or advanced training for women in the private sector
[Response was provided in the Preliminary Investment Feasibility Study]
The project will improve women's access to education (primary, secondary, vocational)
[Response was provided in the Preliminary Investment Feasibility Study]
The project will create jobs available to women (temporarily or permanently)
[Response was provided in the Preliminary Investment Feasibility Study]
The project will improve women's access to safe water, food, and medical services
[Response was provided in the Preliminary Investment Feasibility Study]

Are civil society organizations representing women and vulnerable groups included in the consultation process?

No
[Response was provided in the Preliminary Investment Feasibility Study]

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

    [The technical approach was selected for further detailed analysis or implementation.]

    Pending

    [The project initiator has not taken any decision about this alternative technical approach.]

    Commercial Justification

    Supplier and contractor market assessment

    Is the project likely to attract a sufficient number of bidders to ensure real competition that will encourage bidders to think innovatively and maximize the quality of their proposals?
    Yes

    [Response was provided in the Preliminary Investment Feasibility Study]

    Is the project of interest to small and medium-sized enterprises?
    Yes

    [Response was provided in the Preliminary Investment Feasibility Study]

    Will the project involve national or international suppliers and contractors?
    Yes, both national and international

    [Response was provided in the Preliminary Investment Feasibility Study]

    Has an analysis of available procurement options been conducted for the technical solution?
    No

    [Response was provided in the Preliminary Investment Feasibility Study]

    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
    Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
    Yes
    [Response was provided in the Preliminary Investment Feasibility Study]

    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

    Availability of services

    Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
    No – analysis not performed

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project Financing Mechanisms

    Are funding sources and mechanisms identified?

    Source and MechanismYesNo

    Public-private partnership

    Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
    No, no assessment was conducted.

    [Response was provided in the Preliminary Investment Feasibility Study]

    Are there, after conducting an appropriate study, private investors interested in the possibility of implementing the project in the PPP format?
    No

    [Response was provided in the Preliminary Investment Feasibility Study]

    Management Rationale

    Team competencies

    Determine which competencies/expertise required for successful project preparation and implementation can be provided by the project initiator's own project team (without involving external advisors)
    Strategic justification - analysis of the strategic feasibility of the project

    [Response was provided in the Preliminary Investment Feasibility Study]

    Economic justification - economic analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project management - communication with stakeholders

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project management - risk management

    [Response was provided in the Preliminary Investment Feasibility Study]

    Economic justification - social and gender analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project management - public consultations

    [Response was provided in the Preliminary Investment Feasibility Study]

    Economic feasibility study - technical expertise

    [Response was provided in the Preliminary Investment Feasibility Study]

    Business case - analysis of available procurement options

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project management - legal support

    [Response was provided in the Preliminary Investment Feasibility Study]

    Strategic rationale - SDG compliance analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project management - working with international financial organizations (IFOs)

    [Response was provided in the Preliminary Investment Feasibility Study]

    Financial analysis - financial analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Strategic rationale - demand analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Economic justification - environmental expertise

    [Response was provided in the Preliminary Investment Feasibility Study]

    Business case - analysis of the market environment

    [Response was provided in the Preliminary Investment Feasibility Study]

    Does the team have experience implementing similar projects?
    Yes, successfully implemented 1 or more similar projects

    [Response was provided in the Preliminary Investment Feasibility Study]

    Identify which competencies/expertise required for successful project preparation and implementation need to be strengthened by engaging independent experts or consultants
    Economic feasibility study - technical expertise

    [Response was provided in the Preliminary Investment Feasibility Study]

    Economic justification - social and gender analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Strategic justification - forming a justification for the problem and need

    [Response was provided in the Preliminary Investment Feasibility Study]

    Management rationale - public consultation

    [Response was provided in the Preliminary Investment Feasibility Study]

    Business case - analysis of the market environment

    [Response was provided in the Preliminary Investment Feasibility Study]

    Economic justification - environmental expertise

    [Response was provided in the Preliminary Investment Feasibility Study]

    Management rationale - project management

    [Response was provided in the Preliminary Investment Feasibility Study]

    Strategic rationale - SDG compliance analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Management rationale - communication with stakeholders

    [Response was provided in the Preliminary Investment Feasibility Study]

    Business case - analysis of available procurement options

    [Response was provided in the Preliminary Investment Feasibility Study]

    Economic justification - economic analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Management justification - other

    [Response was provided in the Preliminary Investment Feasibility Study]

    Financial analysis - financial analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Management rationale - risk management

    [Response was provided in the Preliminary Investment Feasibility Study]

    Strategic justification - analysis of the strategic feasibility of the project

    [Response was provided in the Preliminary Investment Feasibility Study]

    Strategic rationale - demand analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Management rationale - working with international financial organizations (IFOs)

    [Response was provided in the Preliminary Investment Feasibility Study]

    Management justification - legal support

    [Response was provided in the Preliminary Investment Feasibility Study]

    Is there an understanding of where to find relevant experts and consultants?
    Partially, we are considering options

    [Response was provided in the Preliminary Investment Feasibility Study]

    Risk assessment

    Financial riskDefinedUndefined
    Results of the feasibility analysis
    Project Preparation Program Engagement and Funding Needs

    Is there ongoing cooperation or support within the framework of international technical assistance (ITA) or from other donor or government agencies?

    No
    [Response was provided in the Preliminary Investment Feasibility Study]

    Does the project require preparation assistance from Project Preparation Programs (PPF)?

    Development of a full feasibility study;
    [Response was provided in the Preliminary Investment Feasibility Study]
    Finalization of existing documentation for the preparation of a preliminary feasibility study
    [Response was provided in the Preliminary Investment Feasibility Study]
    Development of design and estimate documentation (DED);
    [Response was provided in the Preliminary Investment Feasibility Study]
    Updating existing documentation regarding the preparation of design and estimate documentation (DED)
    [Response was provided in the Preliminary Investment Feasibility Study]
    Updating existing documentation regarding the preparation of the feasibility study
    [Response was provided in the Preliminary Investment Feasibility Study]
    Other
    [Response was provided in the Preliminary Investment Feasibility Study]
    Need for financing

    Does the project require additional funding for preparation?

    No
    [Response was provided in the Preliminary Investment Feasibility Study]