Uzbekistan directs $75 million for southern gas field development
Uzbekistan, Tashkent, Feb.24 /Trend D.Azizov/
National Holding Company (NHC) Uzbekneftegaz plans to implement a project to complete development of gas field in South Tandyrcha situated in the Kashkadarya region in the south of Uzbekistan worth $75 million until 2015, a source in the government circles of the republic told Trend on Friday.
The source noted that the project includes the construction of a booster compressor station (BCS) and the drilling of new wells using new technology. The project will support the production of gas from the field at the level of one billion annually.
The Southern Tandyrcha field has been operating since the second half of the '90s and is part of the resource base of the Shurtan Gas Chemical Complex. Its reserves were not disclosed.
Financing of the project is expected to be funded by NHC Uzbekneftegaz, Uzbek banks loans and foreign investment. Currently, NHC Uzbekneftegaz is negotiating with several foreign investors to raise loans for the project, the spokesman said.
The source also added that the holding company may start the project in the second half of 2012. The term of its implementation is three years.
NHC Uzbekneftegaz has implemented similar projects for the development of the two other major fields in Kashkadarya - Zevardy and Pamuk worth about $170 million in 2007-2009. Two BCS with a total capacity of seven billion cubic metres of gas per year were constructed in the development.
Uzbekneftegaz plans to complete projects on two more fields in Kashkadarya - Kultak and Alan in 2015. The total project cost is $325 million. The constructions of DCS and related infrastructure that will produce an additional 7.5 billion cubic metres of gas are also being provided.
Some 232 deposits of hydrocarbons, including the 183 gas deposits have been discovered in Uzbekistan at the beginning of 2011. Some 103 of the newly discovered fields are under development and 60 are being prepared for development and exploration.
Uzbekneftegaz, the monopoly operator of the oil and gas sector of Uzbekistan was established in 1998. It includes six joint stock companies and provides more than 90 per cent of the republic's hydrocarbon production.