Burisma Holdings launches new facilities amid economic slump in the country

10 July 2015

Ukrainian gas production is facing hard times. Fiscal policy, which the government has conducted last year, has made investment projects impossible for gas producers. Foreign investment has started to leave the industry. The Ministry of Energy and Coal Industry recognizes today that reduced rates of rent payments are critically required for gas producers to overcome the crisis, which the mining industry has got into and gain sympathy of investors.

However, even in such difficult conditions, some private companies are trying not to freeze projects, to develop new fields and to put into operation new wells. One of such companies is Burisma Holdings, which has launched a number of new facilities in the Kharkiv region – well for Vodyanovskaya Area, adjacent temporary test separator unit (TTSU), and gas treatment facilities “Zhuravlina”.

The first well has been drilled in Vodyanovskaya Area as far back as in the Soviet Union in 1982-1985, but difficult geological conditions have not allowed to explore potential gas-bearing formations. The works had to be stopped due to intensive gas show and critical condition of wellbore.

Drilling Rig in Vodyanovskaya Area

One of the most powerful wells in Ukraine is drilled here now. Modern innovation technology has allowed to overcome difficulties in drilling and make its depth up to 5600 meters. Burisma Holdings Contractor – Systemoilengineering LLC – is completing well preparation for putting in operation.

According to Oleg Kudlai, Gas Production and Treatment Department Chief at Systemoilengineering LLC, availability of gas shows has caused great difficulties in drilling process, which has resulted in increasing mud weight up to 2.17 g/cm3. As thirty years ago, drilling people have opened high-pressure formations, but the deepening of wells has been successfully made by efforts of a large expert team this time.

“Present equipment can cope with such difficulties. We have coped with gas shows and drilled the well to design depth”, – says Oleg Kudlai.

Well drilling has been started last year, and it has already reached its maximum depth. As Mr. Kudlai has explained, well bore is in cementing process now and last third casing string section is being prepared for running-in.

Drilling Tool Assembling

There are totally 120 people, including four American specialists working on drilling site. Their participation is due to the fact that all equipment used for drilling, has been brought from USA. The Ukrainians shall be trained to work with foreign equipment.

The Americans train the Ukrainians

Western equipment can drill wells to deeper depths, and do it efficiently and safely, continuous monitoring the whole process. Powerful pumps with high performance, flow and pressure allows to adjust drill mud feeding in extended volume, which is especially important at the beginning of drilling when its large scopes of feeding are required.

According to Mr.Kudlai, the more the hoisting and mud feed capacities are, the greater the potential for drilling is.

The process cycle of modern drilling rig minimizes the impact on the environment. Recycling of drill mud can radically reduce the consumption of water, chemicals and weighting additive – it is taken away after drilling for further use on other wells.

BOP Control System of O.C.O. (USA) is used for well sealing, preventing fires and environment pollution

Temporary test separator unit (TTSU) is being constructed adjacent to well, where produced gas will be prepared for supplying to gas pipeline. TTSU is being built from the beginning of April and about half scope of work has been completed by the beginning of July. Currently, there are installation works for process equipment, platforms, tank farm, underground and ground-surface pipelines are being constructed.

“The work goes at a fast pace, load on the workers is very high. People are working in two shifts – from four a.m. till two p.m. and two p.m. to ten p.m.”, – said Kudlai.

Second Stage Separator and Splitter are already installed

Static pressure in well is expected to be about 800 atmospheres, in pipelines from well to TTSU – up to 320 atmospheres, delivery pressure in gas pipeline – 25 atmospheres.

Although the situation in Ukraine is not easy and many companies are forced to reduce expenses, the project is decided to be completed till the end.

“One cannot save here. Any savings will affect work quality and completion rate. It will be not saved on the equipment – it should be of high quality and reliable. All construction work for wells and TTSU are performed using the most modern materials and technologies, taking into account the principles of energy efficiency and waste-free production, and environmental legislation”, – says Kudlai.

The company does not forget about social obligations, by improving infrastructure and helping the social development of the surrounding villages. Access road is repaired in Vodianoye village. The company has also repaired the artesian wells and builds water supply system, which Vodianoye and Alekseyevka (Kharkov region) villagers can be connected to.

If gas production object looks like an ordinary building before putting into operation, it is just an example of cleanliness and neatness after it. At least this is the case for the already completed gas treatment facilities (GTF) “Zhuravlina”, which Burisma Holdings has completed a few weeks ago. Nowadays facilities treat gas coming from adjacent well. GTF capacity is designed for several wells.

Flowing well near GTF “Zhuravlina”

Gas drying, which supply pressure is 210 kg / sq. cm, is performed in two stages. Liquid is separated by mechanical movements of special blades in First Stage Treatment separator. Liquid is drained to a separate tank and gas comes into Second Stage Treatment separator. Then liquid is separated at gas cooling till low temperature (-20 °C). Heat exchanger saves energy for cooling and further heating of gas.

Special equipment – Ejector – is used for low-pressure gas selection, which is also supplied to the gas transportation system or is used for heating of facilities. Such gas is just burned or released in many production fields, but Burisma Holdings tries to utilize it, so that it does not pollute the environment.

There are two shifts of seven people each on plant, employees live in the administrative and amenity building.

People, effective business processes, technology and innovation are the Burisma Holdings key values. It allows company to maintain leadership among private gas producers and to be the best employer in the industry.

People — Burisma Holdings key value