Ukrnafta expands drilling, boosts gas-to-power amid energy strain
Ukrnafta revealed plans for 2026 (Photo: Ukrnafta)
Ukraine’s largest oil and gas producer, Ukrnafta, plans to drill dozens of new wells, modernize its gas station network, and implement gas-to-power generation projects in 2026, Interfax-Ukraine reported on Feb. 19.
The plan, initially approved last November, is currently being revised due to the destruction of production facilities by Russian drone and missile strikes in late 2025 and early 2026, said Duncan Nightingale, chairman of Ukrnafta’s supervisory board.
“The key goal is to ensure the necessary level of oil and gas production in order to fulfill our obligations to the Cabinet of Ministers and Naftogaz regarding contributions to the state budget… Ukraine is currently purchasing large volumes of gas from Europe at a high price, which is quite expensive. Therefore, we need to drill more wells and increase production, particularly of gas,” Nightingale explained.
He added that the realization of these priorities will depend on available funds, resource prices, and Ukrnafta’s income. The company continues to pursue a multi-energy approach, with electricity generation a top priority amid ongoing attacks.
“The development of our own generation is a strategically important direction given the country's energy needs… We need to generate electricity independently wherever possible. This is possible through an effective gas-to-power process,” he said, noting that such installations are mobile, compact, and more difficult to destroy than large facilities.
“If we generate electricity ourselves, we have operational stability even when disconnected from the general grid. This allows us to maintain production and supply. There is a specific plan for implementing gas-to-power projects. They will move forward in accordance with the 2026 financial plan and will be scaled up at the rate at which funds become available.”
Nightingale specified that Ukrnafta has projects financed through its own capital and external funds, including the EBRD, totaling around 400 MW. “This figure includes various projects: some are 2–3 MW (small local gas-to-power plants near our facilities), and some are very large CHP projects that can be at the level of 200+ MW. It all depends on the available capital,” he said.
Ukrnafta JSC is Ukraine’s largest oil producer and operator of the national gas station network. It has 1,807 oil and 164 gas production wells on its balance sheet. In 2025, the company drilled 25 new wells, increasing oil production by 3.77% and gas production by 2.86%.
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