DTEK Oil & Gas produced 2.06 bcm of natural gas in 2021

Natural gas production at Ukraine’s largest private
producer DTEK Oil & Gas (DTEKOG) was 2.06 bcm (36.9 kboepd) in 2021, or 12%
more yoy, according to its press release published on Jan. 25.

The company completed the construction of four new
wells and workovers of seven wells, the release said. In 2021, its investments
amounted to UAH 2 bln (USD 73 mln) and the plans for 2022 foresee a doubling of
the investments, which will allow for production volume increases in subsequent
years, according to DTEK Oil & Gas’ CEO Igor Shchurov as cited in the
release.

Dmytro Khoroshun: DTEK Oil
& Gas has apparently updated its near-term plans, thus boosting its
investments.

Namely, the planned USD 145 mln of investments in
2022, double yoy, is much higher than what could be inferred from information
provided in September: CapEx in 2022 would be flat yoy from USD 50-70 mln in 2021.

The decision to boost investment plans seems logical
as the outlook for natural gas prices in Ukraine has strengthened from
September.

The investments the company mentioned in the release
might include spending other than what is classified as CapEx in its statement
of cash flows, we think.