Ukraine cuts production of oil by 11.6%, gas condensate by 2.5% in 2016

Ukraine in 2016 reduced oil production by 11.6% (by 208,900 tonnes) compared with 2015, to 1.597 million tonnes.

A source in the Ministry of Energy and Coal Industry told Interfax-Ukraine gas condensate output decreased by 2.5% (by 16,100 tonnes), to 640,000 tonnes.

Naftogaz Ukrainy enterprises reduced oil production by 8.8% in 2016, to 1.546 million tonnes, that of gas condensate by 6.7%, to 454,000 tonnes.

PJSC Ukrnafta reduced extraction of oil by 8.4%, to 1.445 million tonnes, gas condensate by 21.5%, to 73,100 tonnes, PJSC Ukrgazvydobuvannia reduced oil production by 14%, to 101,500 tonnes, gas condensate output by 3.3%, to 380,900 tonnes.

Other oil and gas companies in 2016 reduced oil production by 54.5%, to 50,300 tonnes, but increased gas condensate output by 9.9%, to 186,000 tonnes.

Such a significant decline in oil production by private companies is primarily due to the suspension of licenses of JV UkrKarpatOil Ltd in summer 2015 because of significant tax debts. The company in five months of 2015 extracted 28,835 tonnes of oil with gas condensate and in 2014 some 51,690 tonnes.