Ukraine has annual production of a bit over 4 mn tons of raw oil, which makes 15-20% of annual needs. As compared to peak-high volume of oil extraction reaching 14.4 mn tons in 1972, decline only followed in the years later – down to 2 mn tons in 2000.
There are tree areas of oil exploration in Ukraine: Prikarpatskiy, Dneprovsko-Donetskiy, and Prichernomorskiy (Black Sea) ones.
Oil producing industry suffers quality decline in the raw stock. Eastern oil and gas region (Dneprovsko-Donetsk hollow) remains the key producer of oil and gas, though all main deposits have already entered final stage of exploitation with gradual declining production (excavation of producing resources upon main oil deposits reaches 90-95%). It should be mentioned that oil cost is significantly affected by the way it is extracted. Ukrainian-produced oil has rather high costs, as its production in progressive fountain flow way has nearly stopped. Hydrocarbon extraction in Ukraine got low in profitability, while deposits with hard-to-reach and exhausted wells are already at loss making point. Oil has been recently turning expensive – the trend related complicated conditions for exploration and exploitation of most deposits.
The share of hard-reaching oil deposits makes 60-65% in gross volume and keeps growing. Due to high degree of oil deposit excavation, there is a steady tendency of falling debits of new wells (in the last 10 years, average debit of one well reduced from 27 to 23 tons/day). More than half of forecast oil resources is expected at 5-7 km deep, which makes their mastering very unlikely with state-of-art development of production equipment and technologies.
Resolution of the Cabinet of Ministers of Ukraine of September 17, 1996 No.1141 “Program of mastering hydrocarbon resources of Ukrainian sector in the Black and Azov seas” is almost unfulfilled because of lack of government resolutions aimed at its implementation.
In 2006, Ukraine produced 4.4 mn tons of oil with condensed gas, which is by 87.3 ths. tons or 1.9% less as compared to 2006.
In the past year, enterprises under Neftegaz Ukraine National JSC produced 4.0 mn tons of oil with condensed gas – a fall by 73.3 ths. tons or 1.8% versus the volume of 2006.
Companies of Nadra Ukraine (Entrails of Ukraine) and other enterprises (joint ventures and companies) in 2007 produced 401.9 ths. tons of oil with condensed gas, which suggests decrease by 14.07 ths. tons or by 3.4% in comparison to 2006.
Adjusted National program “Oil and gas till 2010” (approved by the Decree of the Cabinet of Ministers of Ukraine No.665 of June 21, 2001) provides for increasing production of oil with condensed gas to 5.2 mn tons till 2010, but it is only possible in the condition of immediate wide-scale boosting of geological exploration works volume.
It is about exploration, conceptual design at untraditional oil-and-gas objects – in depth zones, crystalline earth’s crust, and hydro formation areas in underwater depths of the Black Sea. One of these areas is located at northern edge of Dneprovsko-Donetsk hollow, along its northern deep fault. 12 industrial deposits of oil and gas were stroke here in 1989-1991 in the section of 250 km long and 30-35 km wide.
Around USD 600 mn should be invested in order to expand exploration works in Ukraine.
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