EBRD €36.4m boost modernizes Ukraine's gas future
Ukrgasvydobuvannya, a subsidiary of Ukraine's state-owned gas giant Naftogaz Group, will receive a loan of €36.4 million ($41.6 million) from the European Bank for Reconstruction and Development (EBRD) to modernize its drilling equipment.
According to the company's CEO, Sergiy Koretskyi, the funds will be used to purchase new mobile drilling rigs with lifting capacities of 276,000 and 397,000 pounds. This investment will significantly enhance the company's ability to conduct complex well reconstructions, especially at greater depths.
Currently, most of Ukrgasvydobuvannya's equipment can lift only up to 176,000 pounds, which is insufficient for many older and deeper wells across the country. The new equipment will help address this limitation and strengthen Ukraine's energy sector. "The modernization of our fleet will allow us to operate on deeper, more technically demanding wells," says Koretskyi. "It will also help accelerate the restoration of production at existing sites, supporting stable gas supplies for Ukraine."
EBRD supports Ukraine's energy security
This is not the first instance of EBRD financing for Naftogaz aimed at improving Ukraine's energy security. As part of preparations for the 2025 heating season, Naftogaz secured €430 million ($489 million) from the Bank in April. Additionally, the EBRD loaned Naftogaz €270 million ($307 million) to finance emergency gas purchases for the next two heating seasons, as reported by EBRD Vice President Matteo Patrone.
Notably, the $41.6 million loan marks the first time the EBRD has directly funded gas drilling equipment. Increasing domestic gas production has become a priority for the Ukrainian government since Koretskyi assumed the role of CEO of Naftogaz Group in the spring of 2025.
New leadership and ambitious development plans
Sergiy Koretskyi assumed the position of CEO of Naftogaz Group on May 14. He is the first CEO to initiate the modernization of the Group's production equipment. Previously, Koretskyi was the CEO of Ukraine's largest private oil company, WOG (Continuum Group). In 2022, he became the head of Ukrnafta and Ukrtatnafta—the largest state-owned oil extraction and production group in Ukraine—after it was nationalized from oligarch Ihor Kolomoisky.
In the fall of 2024, Koretskyi reported that Ukrnafta achieved profits of 40 billion hryvnias (963.6 million dollars) from 2022 to 2024. As CEO, he also organized the first 3D seismic surveys in a decade, replacing outdated equipment. In 2025, Ukrnafta plans to drill about 30 new wells and conduct general overhauls and modernization of equipment to boost production, according to the gas infrastructure company Ukrayinska Energetyka.
