Tashkent, Uzbekistan, May 14
By Demir Azizov- Trend:
"Lukoil Uzbekistan Operating Company" LLC (a subsidiary of "Lukoil" in Uzbekistan) will complete the development of the "Southwestern Hissar" field in Uzbekistan in 2016,
according to the materials distributed at the international exhibition " Oil and Gas Uzbekistan- OGU 2014" opened in Tashkent on May 14.
"The launch of the main facilities is scheduled for 2016, investment volume will make up $1 billion, the maximum level of gas - 4.8 billion cubic meters per year," the materials said.
Earlier, the launch of the main facilities was scheduled for 2015.
The "Southwestern Hissar" field development project which was launched in 2013 envisages the construction of a comprehensive gas treatment capacity up to 4.8 billion cubic meters of gas per year, installation of the preliminary gas treatment of 1.8 billion cubic meters, engineering communications, transformer substation, and other facilities .
As previously reported, "Lukoil" joined the "South-Western Hissar" project in Uzbekistan in 2008.
Lukoil Overseas, (wholly owned subsidiary of "Lukoil") completed the deal to buy a group of SNG Holdings Ltd in March 2008, including Soyuzneftegaz East Limited which is a participant of a production sharing agreement (PSA) for developing the fields in South-West Hissar and Ustyurt regions in Uzbekistan. The cost of the deal amounted to $580 million.
"Uzbekneftegaz" National Holding Company is Uzbek partner of "Lukoil" in PSA as the government's authorized body.The PSA was signed for a period of 36 years, Uzbekistan's share in the profit production ranges from 55 to 80 percent depending on the profitability of the project.
Natural gas production at the "Southwest Hissar" field began in December 2011 in the largest field unit of Djarkuduk - Yangi Kyzylcha with annual output of 1.1 billion cubic meters of gas. Oil has been extracted in the Southern Kyzylbayrak and Koshkuduk fields on the block with the volume of 100,000 tonnes per year so far.
At present, Lukoil is working in Uzbekistan to implement three PSA projects - "Kandym-Khauzak-Shady-Kungrad". It develops South-West Hissar and explores the Uzbek part of the Aral Sea within the international consortium.
International Oil and Gas Uzbekistan - OGU 2014" exhibition" was organized by the "Uzbekneftegaz" NHC, the Ministry of Foreign Economic Relations, Investments and Trade, the Chamber of Commerce and the ITE Uzbekistan International Exhibition Company.
More than 160 companies from 20 countries presented their expositions at the event this year.
An international industry scientific-technical conference will be held within the frame work of the exhibition, which will discuss the development of the oil and gas industry in Uzbekistan, experience and new opportunities for international cooperation, as well as financing of projects in the oil and gas industry.
Edited by C.N.