Tashkent, Uzbekistan, Dec.2
By Demir Azizov- Trend:
The LUKOIL Uzbekistan company launched a booster compressor station (BCS) on the Khauzak-Shady gas field in Bukhara region (south of Uzbekistan), said the LUKOIL Overseas company, which is the operator of international upstream projects of LUKOIL.
The report said that the commissioning of the BCS worth $120 million will provide an additional production of more than 1.5 million cubic meters of gas per day, which, taking into account the reconstruction of the gas preliminary preparation rig, will increase production at the field by 20 percent, or 4 billion cubic meters of gas annually.
Lukoil started gas production in Uzbekistan on the Khauzak area under the production sharing agreement (PSA) for the project Kandym-Khauzak-Shady-Kungrad, which was signed in June 2004 for a period of 35 years. The cost of the project is $3.145 billion. The partners are Lukoil (operator, 90 percent) and the Uzbekneftegaz National Holding Company (10 percent).
The agreement provides for the development of Khauzak, Shady and Kandym group fields. Lukoil plans to produce more than 12 billion cubic meters of gas and over 200,000 metric tons of liquid hydrocarbons per year.
Production at the Khauzak site started in autumn 2007. Gas production volumes in 2013 for the Khauzak-Shady project were 3.74 billion cubic meters.
LUKOIL is currently working in Uzbekistan on the implementation of three projects - Kandym-Khauzak-Shady-Kungrad, fields' development of the Southwestern Hissar, and conducts geological exploration of the Uzbek part of the Aral Sea as part of the international consortium.
LUKOIL plans by 2017 to produce 18 billion cubic meters of gas within the first two projects under the PSA. The cumulated production of natural gas on the LUKOIL Uzbekistan oil fields for today is 25 billion cubic meters.
The total investments volume of LUKOIL in Uzbekistan exceeded $3.5 billion. The company as a whole plans to invest in projects in Uzbekistan for more than $8 billion.
The operator of the projects in Uzbekistan is LUKOIL Uzbekistan Operating Company LLP (subsidiary of LUKOIL Overseas Holding Ltd.).