Uzbekistan, Tashkent, Dec. 29 / Trend D.Azizov /
Uzbekistan plans to initiate 37 investment projects in oil and gas in 2011-2015, which will be worth around $19.394 billion.
The plans were devised after the Uzbek President passed a resolution on "priorities of development of industry in Uzbekistan in 2011-2015", subsequently approving the development program.
Within the program, Uzbekistan is planning to invest about $23.05 billion in new constructions, $5.242 billion in projects on modernization and reconstruction of existing enterprises, and $1.783 billion on technical and technological re-equipment projects.
The program also comprises plans to finance the projects through self-owned funds of the National Holding Company Uzbekneftegaz at the volume of $ 1.858 billion, loans of the Fund for Reconstruction and Development of Uzbekistan at $826.4 million, loans of commercial banks in the republic at $153.1 million and foreign investment and loans of $16.557 billion.
The largest construction project will be part of the Kandym group of fields' development, which involves constructing a gas processing plant. The project also includes the development of Khauzak and Shady fields, as well as conducting exploration on the Kungrad area under the PSA. The implementation of projects, worth $3.157 billion, would allow the extraction and processing of 11 billion cubic meters of natural gas.
In addition, a consortium of companies Uzbekneftegaz, Malaysian Petrolium Nasional Bhd (Petronas) and South Africa's Sasol Ltd, will construct the synthetic liquid fuels plant based on the Shurtan chemical complex, which is worth $2.739 billion and with a capacity of processing 3.5 million tons of natural gas. The plant will produce 672,000 tons of diesel fuel, 278,000 tons of jet fuel, 361,000 tons of naphtha and 63,000 tons of liquefied gas. The project will be implemented in 2014.
The program also includes exploration work of hydrocarbons in Uzbekistan on 15 investment units with the participation of foreign investors, including Chinese, Russian, Korean and Malaysian companies, with a budget of about $1.3 billion.
Uzbekistan ranks second among the CIS countries for natural gas production and is also among the ten largest gas producing countries in the world. Annually, Uzbekistan produces over 60 billion cubic meters of natural gas and around eight million tons of liquids.
According to official statistics, in 2009, Uzbekneftegaz reduced the volume of oil and gas condensate by 7.4 percent or 4.455 million tons, compared to the same period in 2008, during which there was a decrease in gas condensate by 5.4 percent or 2.124 million tons and in oil by 9 percent or 2.331 million tons.