First start up gas facility at the structure in Uzbekistan is commissioned

Oil&Gas Materials 17 January 2012 20:51 (UTC +04:00)

Uzbekistan, Tashkent, Jan. 17 /Trend D.Azizov/

Russian Oil Company Lukoil commissioned the first start up facility in the western section of Shady (Khauzak-Shady fishing of Bukhara region) in Uzbekistan, Lukoil Overseas - the operator of international upstream-projects of the company said on Tuesday.

It was reported that five wells with a total daily output of over four million cubic meters of natural gas are commissioned.

Lukoil laid infield pipeline with a length of 21 km from the site and to the fuel and gas package (FGP) on Khauzak.

It is planned to drill and commission 9 producing wells on the territory of West Shady, to develop utilities of the second start up facility, to build roads and power lines infield in the near future.

PSA on the project Kandym-Khauzak-Shady-Kungrad was signed in June 2004 for a period of 35 years. The participants of the PSA are Lukoil with a share of 90 percent and the National Holding Company Uzbekneftegaz - 10 percent. The volume of investments valued at more than $4 billion.

The agreement provides the development of Khauzak, Shady and Kandym group fields. The combined proven reserves amounted to 214 billion cubic meters of gas and 8 million tons of gas condensate.

More than 12 billion cubic meters of gas and over 200 thousand tons of liquid hydrocarbons per year will be produced from these fields according to Lukoil
Exploration of Kungrad block in Ustyurt, forecasted resource of which is estimated at 100 million tons of oil will be implemented as a part of a project.