Tashkent, Uzbekistan, Dec.2
By Demir Azizov- Trend:
Russia's LUKOIL national company invested $549 million in the implementation of gas projects in Uzbekistan in Jan.-Sept. 2014, compared to $444 million in the same period of 2013 (an increase by 23.7 percent), according to the company.
At the same time, LUKOIL invested $248 million in Q3 of 2014, compared to $185 million in the same period of 2013 (an increase by 34.1 percent).
The company said that the gas production volume abroad has decreased by 9.8 percent compared to the first nine months of 2013, mainly due to the decrease in production in Uzbekistan. No information was provided about the volume of gas production in Uzbekistan in Jan.-Sept. 2014.
Currently, Lukoil is carrying out production in Uzbekistan at two contract areas - at the Khauzak-Shady field in Bukhara region and at the Hissar group of fields in Kashkadarya region.
A production sharing agreement (PSA) on the Kandym-Hauzak-Shady block, which stipulates natural gas production in Uzbekistan's southwestern Bukhara-Khiva region, was signed by the Lukoil and the Uzbekneftegaz National Holding Company in 2004 for a period of 35 years.
The project's cost stands at $3.145 billion. The production at the Khauzak site started in autumn 2007.
Gas production at the West Shady site started in late 2011. The production volume in 2013 amounted to 3.74 billion cubic meters of gas.
At the same time, the 'Kandym early gas' project envisaging the development of Kuvachi-Alat and North Shady fields is being actively implemented.
The production sharing agreement on the Southwest Hissar project was signed in January 2007 for the period of 36 years. Seven fields with the proven geological reserve of nearly 100 million metric tons of fuel equivalent are located on the contract territory.
The volume of investments in the project will exceed $1.2 billion, while the gas production volume will be equal to 4.2 billion cubic meters per year. Gas production within the Hissar project started in late 2011 and the gas production volume at the field reached the planned level in 2012. Gas production at the block totaled 1.1 billion cubic meters in 2013.
It is planned to put into operation the major facilities in 2017. The designed gas production level is 4.8 billion cubic meters per year. Aside from these projects, Lukoil also participates in the project for development of the Aral block in Uzbekistan.
The cumulative natural gas production at the fields of Lukoil Uzbekistan today stands at 25 billion cubic meters, according to Lukoil Overseas.
LUKOIL is one of the largest foreign investors in Uzbekistan.
The total cumulative volume of investments made by Lukoil in Uzbekistan exceeded $3.5 billion. The company plans to invest in the projects a total of over $8 billion and increase the annual gas production volume to 18 billion cubic meters by 2016.
"LUKOIL Uzbekistan Operating Company" (a subsidiary of LUKOIL Overseas Holding Ltd.) is an operator of the projects in Uzbekistan.
Edited by CN