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Uzbek, Chinese companies form JV for production of oil and gas equipment

Oil&Gas Materials 23 June 2010 14:43 (UTC +04:00)

Uzbekistan, Tashkent, June 23 / Trend D.Azizov /

The National Holding Company (NHC) Uzbekneftegaz and Chinese Tianjin Ring-Top Petroleum Manufacture Co. ltd signed the founding documents of a joint venture "UzRT Petroleum Manufacture" on a parity basis for creating a production of oilfield equipment worth $10 million in the Bukhara region, the Uzbek Company told Trend.

The production capacity of the JV, which will be located at the base of JSC "Bukharagazpromstroy" included in the structure of Uzbekneftegaz, will amount to 50,000 tons of pipes for drilling, 200 pieces pumping units and 1,000 pieces of rolling cutter bits annually.

It is expected that the will begin installation of equipment in September 2010, introduce the production operation - in the fourth quarter - and  release the first batch of products -in late 2010.

The project will be financed at the expense of the JV founders.

Earlier, it was reported that China Petroleum Technology & Development Corporation (CPTDC entering the CNPC) plans to establish production of pumping systems used for oil production, as well as equipment for reconstruction of wells on the basis of AK Uzneftegazmash (in the Chirchik city of the Tashkent region).

Uzbekneftegaz is a monopoly operator of oil and gas sector of Uzbekistan, which provides production of more than 90 percent of hydrocarbons in the country. The structure was established in 1998 and brings together six joint stock companies.

The company's authorized capital is 172.137 billion soums. Uzbekneftegaz's capacity allos to provide natural gas production in the amount of 70 billion cubic meters and liquid hydrocarbons in the amount of 8 million tons per year.

Based on the official statistics, Uzbekistan reduced production of oil and gas condensate by 7.3 percent in 2009 to 4,455 million tons compared to 2008. These include the oil production declined by 9 percent - to 2.331 million tons and gas condensate - by 5.4 percent - to 2,124 million tons.

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