#ENERGYSECURITYUKRAINE CONTENTS
4 ABOUT US
6 BOARD OF DIRECTORS
7 OUR VALUES
8 ASSET PORTFOLIO
10 OUR HISTORY
11 GLOBAL INITIATIVES
12 DRILLING
14 SEISMIC
15 FRACKING AND INFRASTRUCTURE
16 PHILANTHROPIC PROJECTS
18 PARTNERS Burisma’s activities have always been based on principles of responsibility. Responsibility to the country, society, and our partners. Our 2018 program follows these principles. Burisma’s «billion» program stands for the production of billions of cubic meters of gas for Ukraine, resulting in UAH billions of taxes received and investment in the field of gas development production. All of this is essential for Ukraine’s energy security and energy independence as it lays a solid foundation for economic growth and contributes to the well-being of the local population in the areas where our Group companies operate. Burisma Group is a pioneer of Ukraine’s gas industry restoration that provides the country with new technologies and international investments. We demonstrate our potential and set new trends. We run a state-of-the-art fleet of drilling, seismic, and fracking equipment in Ukraine and provide other gas producers with new technologies. I am sure that the unique expertise and huge potential of Burisma will help Ukraine implement its ambitious plans to develop the country’s gas market. Burisma strives to become an active market player in Europe, as well as worldwide, by enhancing its experience and applying best practices to technological solutions. Jointly with the largest non-governmental U.S. and European organizations, the company has systematically and comprehensively supported initiatives aimed at ensuring energy security. In June 2016, Burisma Group, together with the Prince Albert II of Monaco Foundation and Aleksander Kwasniewski’s Foundation Amicus Europae, jointly founded the annual Forum on Energy Security for the Future aimed at promoting alternative energy sources and bringing officials, politicians, leading experts, businessmen, and journalists together to address Europe’s energy security issues. In 2018, the Forum will be held for the third year in a row as the largest European discussion platform on energy security. Together with the Atlantic Council, Burisma supports initiatives on transatlantic relations, with a focus on energy security issues. A comprehensive approach and great attention to current energy challenges makes Burisma Group an active global player. All of Burisma’s investment projects are subject to corporate environmental assessment. Burisma Group was established at the turn of the millennium and is committed to charting a bold path amidst global energy changes, making it a key asset for the future of energy development.
Nikolay Zlochevskyi PRESIDENT OF BURISMA GROUP 4 ABOUT US
BURISMA GROUP IS THE LARGEST INDEPENDENT NATURAL GAS PRODUCER IN UKRAINE. IT IS A VERTICALLY INTEGRATED HOLDING COMPANY ENGAGED IN THE EXPLORATION, PRODUCTION, SERVICE, AND SALE OF HYDROCARBONS. BURISMA GROUP OPERATES THE LARGEST MODERN RIG AND HYDRAULIC FRACKING FLEET AS WELL AS SEISMIC EQUIPMENT IN UKRAINE AND ACROSS THE REGION.
EXPLORATION Innovative U.S.-made seismic equipment allows us to conduct efficient exploration without environmental impact. Burisma is self-sufficient in its service needs and helps other market players meet their E&P targets through outsourcing
PRODUCTION Burisma Group operates the largest drilling fleet in Ukraine, including 20 rigs of various modifications and capacities. Among them is a SK 3000 drilling rig with a lifting capacity of 680 metric tons, the most powerful rig in Ukraine and the entire CIS. Burisma Group has designed and put into operation 16 modern natural gas processing plants
SERVICE Burisma provides a full range of oil & gas services, including drilling, completions, and workovers as well as reactivation of idle wells, including hydraulic fracturing ABOUT US 5
PRODUCTION TOTAL HYDROCARBON, MLN M3
1250 21% company’s market share among independent oil and gas producers 986
33licenses for hydrocarbon production in the main oil and gas basins of Ukraine 788
102 % 697 production growth, 2013-2017
463
6 bln UAH taxes paid to the budget for the last two years 213
6200m deepest well of the 180 company, located in Dnieper-Donets basin
106
2010 2011 2012 2013 2014 2015 2016 2017 2018 6 BOARD OF DIRECTORS
Investment banker with over 30 years of experience at companies including Merrill Lynch, Renaissance Capital and Morgan Stanley
NON-EXECUTIVE CHAIRMAN ALAN APTER
President of the Republic of Poland (1995-2005); Member of the Board of Trustees of the International Crisis Group Founded in 2002, BURISMA is an NON-EXECUTIVE DIRECTOR independent oil and gas exploration and ALEKSANDER KWASNIEWSKI production company. In Ukraine, BURISMA is a market leader with Director of the CIA’s Counterterrorist Center annualized natural (1999-2002) and Ambassador at Large for gas production circa counter-terrorism (2002-2004) 1 BCM and over 21% market share NON-EXECUTIVE DIRECTOR JOSEPH COFER BLACK
BURISMA is striving to International expert with prior oil & gas and become an active market renewable energy project experience player across Europe, as well as worldwide, and to stand out by virtue of its NON-EXECUTIVE DIRECTOR values and experience KARINA ZLOCHEVSKA
NON-EXECUTIVE DIRECTOR BURISMA is seeking to strengthen its role RIGINOS CHARALAMBOUS in the field of global energy development, NON-EXECUTIVE DIRECTOR with an emphasis CHRISTINA SOFOCLEUS on exploiting new technology
NON-EXECUTIVE DIRECTOR MARINA PERICLEOUS OUR VALUES 7
Founded in 2002, BURISMA is an independent oil and gas exploration and production company. In Ukraine, BURISMA is a market leader with annualized natural gas production circa INNOVATION SUSTAINABILITY ENERGY SECURITY 1 BCM and over 21% market share We implement modern We follow the best global We strive to strengthen the best-in-class technologies practices in Corporate level of energy security in and equipment to produce Governance and Corporate Ukraine and the European energy in a more efficient Social Responsibility (CSR). We region through expansion and environmentally friendly have reconfigured our Board and increasing our own way. BURISMA is a pioneer composition, inviting highly hydrocarbon production company in twin tubing experienced professionals to volumes. As one of the most technology in Ukraine. This perform as independent directors. dynamic growth businesses allows simultaneous gas We strictly comply with labor in Ukraine, BURISMA is extraction from two separate protection laws and implement contributing to Ukraine’s reservoirs located at different CSR standards to ensure stability and helping to secure depths active compliance with ethical a prosperous future for the standards and international Ukrainian economy norms and practices 8 ASSET PORTFOLIO
WELLS PORTFOLIO 50% OF OUR WELLS ARE CIRCA 5,000 M DEEP
80% DRILLING SUCCESS RATE 154
145
125
70
63
53
31 21 13
2011 2012 2013 2014 2015 2016 2017 2018 2019 Forecast ASSET PORTFOLIO 9
DNIEPER-DONETS BASIN
CARPATHIAN BASIN
BURISMA IS A PIONEER OF THE FIELDS ARE IN CLOSE AS OF TODAY, WE HAVE LESS TWIN TUBING TECHNOLOGY PROXIMITY TO THE MAJOR THAN 1/3 OF OUR POTENTIAL IN UKRAINE ALLOWING GAS GAS PIPELINES AND ARE IN THE PRODUCING STAGE PRODUCTION FROM TWO FULLY CONNECTED TO THEM RESERVOIRS LOCATED AT DIFFERENT DEPTHS
2P Reserves 310 MMboe
3P Reserves 839 MMboe
3P+Prospective Resourses 1936 MMboe
*Source: DeGolyer & MacNaughton and Ryder Scott reports, as of 31.12.2018 10 OUR HISTORY
Started business in Obtained two additional Debut of geological Ukraine exploration licenses. audit by DeGolyer Began own gas roduction and MacNaughton. Implementation of best corporate governance principles. Obtained eight exploration and production licenses for promising areas 2004 2009 2013
2002 2006 2012 Between 2009 and 2013, annual production increased seven fold. In order to improve the U.S.-made rigs and Obtained 9 exploration corporate governance crews begin involvement licenses including 1 system, the management in drilling activities. production license. team was enhanced. Pioneered successful World-class team of Mr. Alan Apter was introduction of twin geologists joins the appointed as Chairman of tubing technology in company the Board Ukraine
PARTNERSHIP GLOBAL INITIATIVES 11
Acquired majority stake of KUB- DRILLING 20 NEW WELLS, Gas from Serinus Energy, the MOST OF THEM ARE biggest oil and gas M&A in Ukraine. CIRCA 5,000 M DEEP. Group has since operated the BURISMA GROUP biggest fracking and seismic fleet in WINS “CHARITABLE the region UKRAINE-2017”
2017
2016 2018
Became top 10 tax revenue contributor to Ukraine state budget. Acquired the biggest drilling rig, the SK 3000, in the region
GLOBAL INITIATIVES
Annual Monaco Energy Fostering innovation Promoting Ukrainian Security Forum and international energy efficiency energy initiatives efforts 12 DRILLING
Burisma operates Ukraine’s largest private rig fleet of 20 drilling units, including those with maximum drilling depth of 10,000 m
Constructed and launched methanol regeneration facility recycling up to 85% of methanol used in gas extraction. Burisma introduced NGL production unit to expand end-product range
Best-in-class drilling equipment run by US crews facilitated optimum drilling performance — a 2,900 m deep well at 45o angle drilled in only 23 days, including rig-up and rig-down procedures DRILLING 13
Modern U.S.-made rigs successfully completed more than 30 new wells over the last two years. Most of them are around 5,000 m deep
Burisma is a pioneer of twin tubing technology in Ukraine allowing gas production from two reservoirs located at different depths
Our equipment is set for tough geological conditions. We use innovative methods of directional drilling in more than 50% of cases 14 SEISMIC
Wide range of geological exploration services, subsurface studies, and field development
The company staff has 20 years of experience in the market of seismic survey services. During this time, more than 10,000 lin. km and 7,000 square km of seismic profiles have been acquired. The customers of our services are leading Ukrainian and foreign oil & gas companies
Geological surveys are done using 40,000 channels and 30 fully equipped seismic vibrators FRACKING AND INFRASTRUCTURE 15
Our fracking unit runs 15 pumps with a total capacity of 35,000 HP. Our main advantage is our best-in-class equipment and our highly qualified personnel with international expertise
Burisma and its affiliates are highly experienced in gas and oil pipeline construction, with a successful track record of completing complex infrastructure solutions for both independent and state-owned contractors
Over the last three years, Burisma Group entities have built and launched more than 250 km of gas and oil pipelines of different sizes for our own needs and more than 300 km for third- party contractors of various complexity (both ground and water) 16 PHILANTHROPIC PROJECTS
Two-year support for the Trans-European Electric Marathon that covers 10 European countries and provides educational programs
Atlantic Council holds forum on Ukraine’s economy with support from Burisma Group
Charity football tournament for journalists. All funds raised were donated to charity PHILANTHROPIC PROJECTS 17
Ukrainian Energy Forum “Raising domestic output, diversity and security of supply through reform, transparency and modernisation”
Burisma Group, in partnership with the Prince Albert II of Monaco Foundation, Atlantic Council and Aleksander Kwasniewski’s foundation «Amicus Europae», co- founded Europe’s largest international forum on «Energy Security for the Future»
Burisma Group Wins «Charitable Ukraine-2017» and «Charitable Ukraine-2018». The Philanthropists’ Association of Ukraine and the Organizing Committee of the «Charitable Ukraine» declared international energy group Burisma winner of the contest in the category «Big business’s charity» and awarded the company with a special prize «Angel of Goodness» 18 PARTNERS
FINANCIAL AUDIT GEOLOGICAL AUDIT
LEGAL SUPPORT
EQUIPMENT AND TECNOLOGIES 19 #ENERGYSECURITYUKRAINE
We are open for cooperation [email protected] burisma-group.com