Lukoil starts active phase of Kandym project implementation in Uzbekistan

Business Materials 18 March 2015 17:28 (UTC +04:00)

Tashkent, Uzbekistan, Mar.18

By Demir Azizov- Trend:

Russian Lukoil has started the active phase of Kandym project implementation in Uzbekistan, said the message of Lukoil Overseas, which is an operator of foreign projects of Lukoil.

Lukoil has implemented the Kandym project since 2004 together with the National Holding Company Uzbekneftegaz under the production sharing agreement (PSA) for the development of the Kandym-Hauzak-Shady-Kungrad fields.

Kandym group includes six gas condensate fields - Kandym, Kuvachi-Alat, Akkum, Parsankul, Khoji and Western Khoji. Commercial production at the Hauzak site started in autumn 2007.

The first phase of the project is designed for production of 2.1 billion cubic meters of gas per year from the Kuvachi-Alat field and the North Shady section of the Khauzak-Shodi deposit with the supply of gas to the Mubarek gas processing plant. The project also includes construction of the Kandym gas processing plant, which is the largest investment project of Lukoil in Uzbekistan.

The composition of plants to be built during the implementation of the first phase of the project includes 12 wells on the field Kuvachi-Alat, nine - on the field North Shady. In addition, it is planned to build commercial gas pipelines with a total length of 130 kilometers, two preliminary gas preparation installations, 170 kilometers of roads, transmission lines with a length of 150 kilometers, an electrical substation on the field Kuvachi-Alat.

Investments in the project are estimated at more than $3 billion.

It was earlier reported that in February 2015, Russian Lukoil and the contracting consortium led by Hyundai Engineering (South Korea) signed a contract for the supply of equipment and construction of the Kandym gas processing plant in Uzbekistan, the total cost of which amounts to $2,662 billion.

The gas processing plant with capacity of 8.1 billion cubic meters of gas a year will allow to process natural gas containing hydrogen sulfide from Kandym group of fields located in the Bukhara region of Uzbekistan in order to obtain purified natural gas, stable gas condensate, as well as ball sulfur and granulated sulfur. The commissioning of the first phase of the gas processing plant is scheduled for July 2018.

At present, Lukoil works over implementation of three projects in Uzbekistan - Kandym - Khauzak - Shady - Kungrad, development of Southwestern Gissar, as well as conducts exploration of the Uzbek part of Aral Sea as part of an international consortium.

By 2016, Lukoil plans to produce in Uzbekistan at least 18 billion cubic meters of gas per year. In 2014, production on the fields in Uzbekistan amounted to 4 billion cubic meters of gas and more than 100,000 metric tons of liquid hydrocarbons, according to the company.

Edited by CN