Ukrnafta's Drilling Activity Surges
In 2025, the Ukrainian state-owned oil and gas company Ukrnafta drilled 25 new wells, a 150% increase over the previous year. This single-year output equals the total number of wells drilled during the entire eight-year period from 2015 to 2022. This remarkable growth follows years of minimal activity; prior to 2023, the company averaged no more than 1-2 wells annually. The pace began to accelerate with 6 wells in 2023 and 10 in 2024, representing a 67% year-on-year increase. This resurgence is a significant development for Ukraine's domestic energy sector, which has faced immense challenges.
Improved Economic Metrics and Operational Efficiency
Alongside the drilling surge, Ukrnafta reported a 3.39% increase in hydrocarbon production (oil and gas equivalent). Specifically, oil extraction rose by 3.77%, while natural gas output grew by 2.86%. Notably, 7 of the 2025 wells were constructed entirely using the company's own resources. Operational efficiency also improved, with rig installation and dismantling time reduced by 24%, saving up to 10 days in the construction timeline for each well.
“We are ramping up drilling within our existing licenses while simultaneously rebuilding our in-house drilling capabilities. This allows us to systematically increase work volumes and reduce dependence on external contractors.”
Bohdan Kukura, Head of Ukrnafta
The expansion in drilling and production suggests a recovery of Ukrnafta's market position and growing self-sufficiency in well construction. Enhanced efficiency and shorter construction times indicate the company is actively optimizing its processes. These improvements could positively impact the firm's financial performance and competitiveness within the volatile global energy market.