National Joint Stock Company “Naftogaz of Ukraine” (Naftogaz) and JSC “Ukrgasvydobuvannya” (UGV) signed Memorandum about Mutual Understanding (Memorandum) with “Halliburton Ukraine” LLC (Halliburton) to further enhance their cooperation in providing oil and gas services for the development of hydrocarbon fields in Ukraine.

The document was signed by Andriy Kobolyev, Chief Executive Officer of the Naftogaz, Andrew Favorov, Member of the Board, Acting Chairman of the Board of UGV, and Joe Rainey, President Eastern Hemisphere at Halliburton.

Within the framework of Memorandum, UGV and Halliburton expect application of advanced world technologies in the field of drilling, workover operations, cementing, hydraulic fracturing, formation stimulation and 3D modeling, as well as provision of advanced equipment and software solutions, in order to increase the volumes of Ukrainian gas production on UGV fields.

Within cooperation between UGV and Halliburton, the companies announced a new achievement - Integrated “turnkey” service contract for Side Track drilling on 26 wells. UGV estimates over 2 bln m3 of additional production during 10 years as a result of restoration of idle wells. The total Sidetrack contract value makes around UAH 2.6 bln.

UGV has successfully cooperated with Halliburton for more than 1.5 years. A contract for the purchase of Halliburton Landmark software was signed in November 2017, followed by Multi-Service Agreement signed in October 2018 for access to drilling tools leasing and purchasing of drill bits and engineering services, etc. Such cooperation has enabled UGV to enhance own technology level and increase the volumes of Ukrainian gas production.

Naftogaz, UGV and Halliburton believe that strategic cooperation is crucial for development of the oilfield service market in Ukraine and achievement of energy independence of the country.