In Ukraine our wholly-owned subsidiary Poltava Petroleum Company (‘PPC’) is the largest non-state producer of oil and gas in Ukraine.
PPC holds 100% interest in four production licences in the Poltava region of Ukraine (Ignatovskoye, Molchanovskoye, Novo-Nikolaevskoye and Rudenkovskoye). Each production licence contains distinct fields which together form the Novo-Nikolaevskoye Complex.
PPC also holds two exploration licences being Zaplavskoye (within the Novo-Nikolaevskoye Complex) and Elizavetovskoye which comprise a total exploration area of 208sq.km.
PPC was established in 1994, initially focusing its efforts on four fields located within the Novo-Nikolaevskoye Complex located in the Poltava region of Ukraine. Production of commercial quantities of oil and gas began in 1995. We have maintained our leading position as one of the largest non-state producers of oil and gas within Ukraine.
PPC continues to be the only non-state oil and gas company with a connection to the Souyez pipeline which transports gas directly into mainland Europe.
Liquefied Petroleum Gas (LPG) production facilities
During 2011 PPC initiated production and sales of LPG at the central production facility. The process extracts propane and butane from the export gas stream for sale as LPG. This reduces the gas available for export however the value of the LPG revenue stream enhances PPC’s economic performance by increasing overall realisations from its gas production.
The LPG processing plant was designed and built in Canada and mobilised to Ukraine during the second quarter of 2011. Storage and loading facilities were constructed in Ukraine with installation completed in June 2011.
The off-take of daily LPG production is contracted to pre-qualified wholesale distribution companies and dispatched by road tanker.