Naftogaz, Ukraine's Naftogaz, to purchase new drilling rigs using EBRD loans
The European Bank for Reconstruction and Development will lend Naftogaz a loan of 36.4 million euros to modernise the drilling equipment. This was announced by the company on Monday.
Naftogaz is the largest producer of Ukrainian gas. However, its production facilities suffered severe damage in a series Russian missile attacks earlier this year. This resulted in a 40% reduction of production.
In a press release, the company stated that it will use the loan to buy new mobile drilling rigs capable of lifting between 125 and180 metric tons.
The upgrade of our fleet will allow us to work on deeper and technically more challenging wells while also allowing us to restore production at existing sites faster, ensuring stable supply of gas for Ukraine", said Serhiy Koretskyi, CEO Naftogaz.
After Russian missiles damaged the production facilities to the east of Ukraine, Ukraine was forced to increase gas imports and withdraw more gas from storage this winter and in the spring.
Serhiy Makogon said that Ukraine would need to import up 6.3 billion cubic meters of gas to meet its winter needs in 2025/26, as the reserves had fallen to record lows.
He stated that Ukraine will need to spend up to $3 billion on gas.
Naftogaz said that it is in discussions with the government and financial institutions around the world to raise $1 billion to buy over 2 billion cubic meters of gas for 2025/26. (Reporting and editing by Kirby Donovan; Pavel Polityuk)
(source: Reuters)
