Lukoil to invest $25 mln in geological survey in Uzbekistan
Uzbekistan, Tashkent, March 1 / Trend D. Azizov /
Lukoil plans to invest $25 million in exploration in licensed areas on Southwestern Hissar in Uzbekistan in 2012, the Lukoil Uzbekistan Operating Company said today.
According to the information, about $15 million were spent on exploration in the Hissar in 2011.
It is expected that the increase of hydrocarbon reserves this year will hit 20 million tons of standard fuel.
The proven reserves (C1 and C2) of the investment block of the south-western Hissar hit 100 million tons of standard fuel today.
The company's plans for this year are to complete drilling on these bodies, to continue working on the seismic and interpretation of seismic data.
Lukoil Overseas has completed a purchase of SNG Holdings Ltd groups, including SoyuzNefteGaz Vostok Limited, which is a member of the PSA for the development of fields of the south-western Hissar and Ustyurt regions begun in 2008.
The sum of the deal is $580 million.
The PSA for this project was signed in January 2007 for a period of 36 years. Uzbekistan's share in the profitable production will hit from 55 to 80 percent depending on the profitability of the project.
The project includes the construction of a plant to process gas, with a capacity of 4.2 billion cubic meters.
Until recently, the Russian company produced oil in Southern Kyzylbayrak and Koshkuduk. In December, gas production was launched on the largest oil field block Dzharkuduk-Yangi Kyzylcha.
In 2014, Lukoil expects to reach a production level of 3.5 billion cubic meters of gas per year on Hissar.
Lukoil also works in Uzbekistan within the first PSA for Kandym-Khauzak-Shady, which was signed in 2004 for 35 years.
The project's estimated cost is $3.145 billion.