LUKOIL begins trial operation of facilities in southern Uzbekistan

Business Materials 13 May 2015 13:05 (UTC +04:00)

Tashkent, Uzbekistan, May 13

By Demir Azizov- Trend:

Russia's Lukoil started trial operation of two rigs of preliminary gas preparation in the North Shady area and the Kuvachi-Alat field in Bukhara region (south of Uzbekistan) jointly with the National Holding Company Uzbekneftegaz within the framework of Early Kandym gas project, which is being implemented in Uzbekistan, said the message of LUKOIL.

Rigs with a total capacity of 2.2 billion cubic meters of gas a year will receive natural gas from 34 wells and after preparation will deliver raw materials to the Mubarek Gas Processing Plant. Commissioning of new facilities will allow LUKOIL to significantly increase the volume of gas produced in Uzbekistan, said the message.

Early Kandym gas is the first stage of the project for the integrated development of Kandym group of fields within the Kandym-Khauzak-Shady-Kungrad PSA. Kandym group includes six gas condensate fields - Kandym, Kuvachi-Alat, Akkum, Parsankul, Khoji and Western Khoji. The Northern Shady site of Dengizkul field is located on the territory of Khauzak-Shady, but its improvement is carried out within the framework of the Early Kandym gas project.

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. Commercial production at the Hauzak site started in autumn 2007.

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 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. Investment in the project will exceed $1.2 billion, the level of gas production - 4.2 billion cubic meters per year.

By 2016, Lukoil plans to produce in Uzbekistan at least 18 billion cubic meters of gas per year.

Edited by CN