Ukraine`s largest state-owned gas producer Ukrgazvydobuvannia intends to raise $76 million in financing from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) to implement a project to increase natural gas production from existing wells, according to the EBRD press service.
The $76 million project on the intensification of production involves the purchase of compressor equipment, as well as installations for the major overhaul of wells, the report said.
The tenders for the purchase of appropriate equipment are expected to be launched in the third quarter of 2017.
Earlier, Ukrgazvydobuvannia in 2016 increased its net profit by 78 times, to UAH 12 billion, or $453 million.
The company increased the output of natural gas by 0.5% in 2016 against 2015, that is, to 14.605 billion cubic meters.
At present, Ukrgazvydobuvannia is implementing the 20/20 program, which envisages the increase in gas production to 20 bcm per year by 2020. The program`s cost is estimated at UAH 110 billion, or $4.15 billion.
Memo. Ukrgazvydobuvannia is Ukraine`s largest gas producer, holding a 70% share in the total volume of the country`s hydrocarbon production.