LUKOIL intends to postpone commissioning of Kandym GPP in Uzbekistan
Uzbekistan, Tashkent, May 13 / Trend D.Azizov /
The Russian Oil Company LUKOIL intends to postpone the construction and commissioning of the Kandym gas processing plant (GPP) in Uzbekistan due to the crisis in the gas market, LUKOIL Vice-President And president of LUKOIL Overseas Holding Ltd, Andrey Kuzyaev said.
"Indeed, the launch date of the GPP will be postponed. We do not like to talk about specific dates, because, first of all, we focus on the availability of the market, the fact when there will be high volumes of gas and more favorable conditions," Kuzyaev said at the international conference Oil Gaz Uzbekistan 2010.
He said the company completes selection of the contractor to design the Kandym GPP with design capacity of 8.1 billion cu m of gas per year. The company also launched drilling of the first wells on Kandym.
LUKOIL planned to build the Kandym-Khauzak-Shady gas processing plant by late 2010 under the PSA signed with Uzbekistan in summer 2004.
Lukoil started gas production in Uzbekistan within the PSA Kandym-Khauzak-Shady in autumn 2007. The total volume of natural gas is exported by Gazprom's main network.
LUKOIL Uzbekistan Operating Company launched project to develop fields in South-Western Gissar worth $1 billion, Kuzyaev said.
The project includes construction of a plant for the selection of condensation and drying gas, the main part of which will be the installation of preliminary gas capacity of 4.2 billion cubic meters.
Contractor for the design and delivery of technological equipment is Toyo Engineering.
In March 2008 Lukoil Overseas, a daughter company of Lukoil, concluded a $580 million deal on purchase of SNG Holding Ltd., including Souyuzneftegaz Vostok Limited, a participant of PSA on development of fields in Southwest Gissar and Ustyurt regions of Uzbekistan.
Uzbekneftegaz is an authorized state agency in the PSA as a second party.
There are seven fields in the Southwest Gissar (Kashkadarinskaya region) - gas condensate fields Jarkuduk-Yangi, Gambulak, Amanata, Pachkamar and Adamtash, oil and gas condensate fields South Kizilbayrak and oil field Koshkuduk.
Major economic indices of the PSA were adopted in March 2009 by Uzbek President Islam Kerimov's decree. In accordance with this document, capital expenses of the investor in the period of implementation of the agreement are $1.196 billion.
The Russian company produces oil in the fields of South Kizilbayrak and oil field Koshkuduk. Over two years oil production here increased by 10 times - up to 100,000 tons per year.
In general, over the next seven years, LUKOIL plans to invest about $5 billion in the implementation of gas projects in Uzbekistan. LUKOIL plans to produce 15 billion cubic meters of gas under the two projects.
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