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#ENERGYSECURITYUKRAINE
CONTENTS
7 OUR VALUES
6 BOARD OF DIRECTORS
4 ABOUT US
8 ASSET PORTFOLIO
10 OUR HISTORY
11 GLOBAL INITIATIVES
12 DRILLING
14 SEISMIC
16 PHILANTHROPIC PROJECTS
15 FRACKING AND INFRASTRUCTURE
18 PARTNERS
Burisma’s activities have always been based on principles of responsibility. Responsibility to the country, society, and our partners. Our 2017 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 fi eld 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 fl eet 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 offi cials, politicians, leading experts, businessmen, and journalists together to address Europe’s energy security issues. In 2017, the Forum will be held for the second 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 ZlochevskyiPRESIDENT OF BURISMA GROUP
making it a key asset for the future of energy development.
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.
EXPLORATIONInnovative U.S.-made seismic equipment allows us to conduct effi cient exploration without environmental impact. Burisma is self-suffi cient in its service needs and helps other market players meet their E&P targets through outsourcing
PRODUCTIONBurisma Group operates the largest drilling fl eet in Ukraine, including 20 rigs of various modifi cations 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
SERVICEBurisma provides a full range of oil & gas services, including drilling, completions, and workoversas well as reactivation of idle wells, including hydraulic fracturing
ABOUT US4
PRODUCTIONGROSS NATURAL GAS, MLN M3
2010 2011 2012 2015 2016
104
178
212
460
2013 2014
692
2017 Forecast
35licenses
for hydrocarbon production in the main oil and gas basins of Ukraine
6 bln UAH
taxes paid to the budget for the last two years
5900m
deepest well of the company, located in Dnieper-Donets basin
30%
company’s market share among independent oil and gas producers
793
1047
1300
ABOUT US 5
BURISMA is striving to become an active market player across Europe, as well as worldwide, and to stand out by virtue of its values and experience
BURISMA is seeking to strengthen its role in the fi eld of global energy development, with an emphasis on exploiting new technology
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 1,3 BCM and over 30% market share
Investment banker with 27 years of experience at companies, including Merrill Lynch, Renaissance Capital, Troika Dialog, and Morgan Stanley
CHAIRMANALAN APTER
President of the Republic of Poland (1995-2005); Member of the Board of Trustees of the International Crisis Group
DIRECTORALEKSANDER KWASNIEWSKI
Director of the CIA’s Counterterrorist Center (1999-2002) and Ambassador at Large for counter-terrorism (2002-2004)
DIRECTORJOSEPH COFER BLACK
Counsel to Boies, Schiller, Flexner, LLP; Chairman of the United Nations World Food Program (WFP)
DIRECTORHUNTER BIDEN
International expert with prior oil & gas and renewable energy project experience
DIRECTORKARINA ZLOCHEVSKA
DIRECTOR
RIGINOS CHARALAMBOUS
DIRECTORCHRISTINA SOFOCLEUS
DIRECTORANTRIA CHRISTOFOROU
BOARD OF DIRECTORS6
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 1,3 BCM and over 30% market share
INNOVATION
We implement modern best-in-class technologies and equipment to produce energy in a more effi cient and environmentally friendly way. BURISMA is a pioneer company in twin tubing technology in Ukraine. This allows simultaneous gas extraction from two separate reservoirs located at different depths
ENERGY SECURITY
We strive to strengthen the level of energy security in Ukraine and the European region through expansion and increasing our own hydrocarbon production volumes. As one of the most dynamic growth businesses in Ukraine, BURISMA is contributing to Ukraine’s stability and helping to secure a prosperous future for the Ukrainian economy
SUSTAINABILITY
We follow the best global practices in Corporate Governance and Corporate Social Responsibility (CSR). We have reconfi gured our Board composition, inviting highly experienced professionals to perform as independent directors. We strictly comply with labor protection laws and implement CSR standards to ensure active compliance with ethical standards and international norms and practices
OUR VALUES 7
WELLS PORTFOLIO50% OF OUR WELLS ARE CIRCA 5,000 M DEEP50% OF OUR WELLS ARE CIRCA 5,000 M DEEP
13
19
27
52
84
106
20152014201320122011 2016 2017 Forecast
61
ASSET PORTFOLIO8
BURISMA IS A PIONEER OF TWIN TUBING TECHNOLOGY IN UKRAINE ALLOWING GAS PRODUCTION FROM TWO RESERVOIRS LOCATED AT DIFFERENT DEPTHS
CARPATHIAN BASIN
DNIEPER-DONETS BASIN
THE FIELDS ARE IN CLOSE PROXIMITY TO THE MAJOR GAS PIPELINES AND ARE FULLY CONNECTED TO THEM
AS OF TODAY, WE HAVE LESS THAN 1/3 OF OUR POTENTIAL IN THE PRODUCING STAGE
ASSET PORTFOLIO 9
PARTNERSHIP
2002
2004
2006
2009
2002 2006
Started business in Ukraine
Obtained 9 exploration licenses including 1 production license. World-class team of geologists joins the company
Obtained two additional exploration licenses. Began own gas roduction
Between 2009 and 2013, annual production increased seven fold. In order to improve the corporate governance system, the management team was enhanced. Mr. Alan Apter was appointed as Chairman of the Board
10 OUR HISTORY
2012
2013
2016
2017
Debut of geological audit by DeGolyer and MacNaughton. Implementation of best corporate governance principles. Obtained eight exploration and production licenses for promising areas
U.S.-made rigs and crews begin involvement in drilling activities. Pioneered successful introduction of twin tubing technology in Ukraine
Acquired majority stake of KUB-Gas from Serinus Energy, the biggest oil and gas M&A in Ukraine. Group has since operated the biggest fracking and seismic fl eet in the region
BECAME TOP 10 TAX REVENUE CONTRIBUTOR TO UKRAINE STATE BUDGET.ACQUIRED THE BIGGEST DRILLING RIG, THE SK 3000, IN THE REGION
GLOBAL INITIATIVES
11GLOBAL INITIATIVES
Annual Monaco Energy Security Forum
Fostering innovation and international energy initiatives
Promoting Ukrainian energy effi ciency efforts
Burisma operates Ukraine’s largest private rig fl eet 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
DRILLING12
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
DRILLING 13
Wide range of geological exploration services, subsurface studies, and fi eld 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 and7,000 square km of seismic profi les 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
SEISMIC14
Burisma and its affi liates 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
Our fracking unit runs 15 pumps with a total capacity of 35,000 HP. Our main advantage is ourbest-in-class equipment and our highly qualifi ed personnel with international expertise
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)
FRACKING AND INFRASTRUCTURE 15
Charity football tournament for journalists. All funds raised were donated to charity
Atlantic Council holds forum on Ukraine’s economy with support from Burisma Group
Two-year support for the Trans-European Electric Marathon that covers 10 European countries and provides educational programs
PHILANTHROPIC PROJECTS16
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 and Aleksander Kwasniewski’s foundation “Amicus Europae,” co-founded Europe’s largest international forum on “Energy Security for the Future”
Two-year joint project with United States Agency for International Development (USAID) “Municipal energy reform in Ukraine” and Ukrainian educational center for training journalists on reforming energy andraising awareness on energy effi ciency
17PHILANTHROPIC PROJECTS
FINANCIAL AUDIT
LEGAL SUPPORT
GEOLOGICAL AUDIT
EQUIPMENT AND TECNOLOGIES
PARTNERS18
19
