Arab Energy Alliance stops its production
The Arab Energy Alliance UA LLC has stopped its gas production at the Bilousivske-Chornukhinske field due to the expiration of the permit formerly issued by the State Service of Geology and Mineral Resources of Ukraine (Derzhgeonadra). The check of the company was carried out in accordance with the annual plan of the Derzhgeonadra.
According to the company’s officials, all concerns regarding operational drawbacks and flows have already been resolved, and the company expects that the permit will be renewed at the next session of the Derzhgeonadra. The company expects to resume its production in a week. Meanwhile, the Arab Energy Alliance UA LLC is retrofiting its compressor station to exclude downtimes in future. To accomplish the retrofits, the company bought all necessary equipment and expendables worth UAH 3.5 mil, as reported by the company’s press service.
Before this production halt, the company produced about 20 thousand cbm per day from the four wells at the Bilousivske-Chornukhinske field. The field extends over 108 sq km with C1+C2 deposits of 3.3 bil cbm of natural gas and 874 thousand ton of gas condensate at 3,000m - 4,500 m core intersections.
Arab Energy Alliance UA is the successor of the Kuwait Energy Ukraine which was established in 2001. The Kuwait Energy was a co-owner of Rudis Drilling Company, a partner of Ukrgazvydobuvannya for joint activities untill 2014. It was reported earlier, the Arab Energy Alliance and Ukrhazvydobuvannya were in litigation for UAH 232 million.