PJSC Ukrnafta has started construction on two oil wells that will collectively produce more than 100 tonnes of oil per day.

"Drilling will begin in August, with drilling equipment currently being transported and sites being prepared," the company reported on its website on Monday.

Both wells are being constructed turnkey by the contractor Energofinance LLC, selected via Prozorro. The wells will tap into productive Viséan deposits.

"The first well is planned as exploratory, inclined, with a projected depth of 4,490 meters and an expected output of 56.6 tonnes per day. The second well is a vertical production well with a projected depth of 4,490 meters and an initial expected output of 47 tonnes per day," said Ukrnafta director Serhiy Koretsky.

As reported, Ukrnafta increased its oil and condensate production by 3% (39,900 tonnes) in 2023 compared to 2022, reaching 1 million 409,900 tonnes. Gas production grew by 5.8% (60.4 million cubic meters), totaling 1.097 billion cubic meters.

The company's strategic goal is to double its oil and natural gas production by 2027 to 3 million tons and 2 billion cubic meters, respectively.

The largest shareholder of Ukrnafta is NJSC Naftogaz Ukrainy, with a 50%+1 share. In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer the state's corporate rights in the company, previously held by private owners, to be managed by the Ministry of Defense.