Uzbekistan, Tashkent, Dec. 30 / Trend D. Azizov /
According to Uzbekneftegas holding, the amount of recoverable proven hydrocarbon reserves of industrial categories, as of January 1, 2012, amounted to more than 2.5 billion tons of oil equivalent, of which about 65 percent is natural gas reserves.
Explored recoverable reserves of hydrocarbons ensure Uzbekistan's need with the current rate of production of natural gas - for 32 years and oil and condensate - for 33 years.
Uzbekistan has recoverable resources - about eight billion tons of equivalent fuel, and geological - about 2 billion tons, as well as preliminary reserves of oil, gas and condensate in the volume of more than 0.5 billion tons of equivalent fuel.
As of early 2012 Uzbekistan discovered 242 fields of hydrocarbons, of which 192 - gas. Of the newly discovered fields, 104 are under development, 66 prepared for development, exploration is still at 72 fields.
The Uzbek territory is divided into five oil and gas regions. At present, there are five oil and gas regions in Uzbekistan: Ustyurt, Bukhara-Khiva, Surkhandarya, Gissar and Fergana. The area of five oil and gas regions is 208,900 square kilometers.
About 20 percent of the total hydrocarbon resources have been developed in Uzbekistan, including 75 percent in the Bukhara-Khiva region , 35 percent in the Southwestern Hissar ,12 percent in Surkhandarya , 22 percent, in Ferghana and 20 percent in Ustyurt region.
The capacity of the Uzbekistan allows providing natural gas production in the volume of 70 billion cubic meters of gas and 8 million tons of liquid hydrocarbons per year.
Uzbekistan currently ranks third among the CIS countries and twelfth in the world in terms of the annual natural gas production.
According to official statistics, in 2011 oil production in the country dropped by 5.8 percent compared to 2010 and amounted to 1.889 million tons, gas condensate - by 9.8 percent - to 1.696 million tons, natural gas production decreased by 4.4 percent - to 63.04 billion cubic meters.
Uzbekistan reduced the volume of liquid hydrocarbon production (oil, including gas condensate) by 10.8 percent in Jan.-Sept. up to 2.466 million tons compared to the same period of 2011.
Oil production during the reporting period decreased by 14.9 percent to 1.228 million tons, with gas condensate production by 6.3 percent, to 1.218 million tons, natural gas - by 1.4 percent up to 46.595 billion cubic meters.
Oil projects
Uzbekistan's oil reserves are estimated at 600 million barrels (82 million tons). Some 191 oil and gas fields were discovered in the country.
Due to the limitation of produced volumes in Uzbekistan oil is used to provide national refineries, the country holds no export potential.
Program of exploration work on prospecting and exploration of deposits of heavy oil and bitumen in the range Korsagly-zone Dasmanaginskoy Surkhandarya region is implemented now to increase production of oil.
In addition, exploration program on prospecting and exploration of deposits of heavy oil within the area Besharcha (southern part of the ridge Babatag) Surkhandarya region and a similar program within the Fergana region are in the development stage.
In order to intensify exploration and increase the rate of hydrocarbon reserves Uzbekistan identified 48 investment blocks, including two units - in potentially oil and gas bearing Middle Syrdarya region. On the 18 units licenses have been issued to foreign investors, on two - Uzbekneftegaz conducts joint exploration with foreign investors, eight - talks are underway with foreign investors to conduct exploration work, and on eight exploration blocks Uzbekneftegaz carries out work.
Uzbekneftegaz intends to intensify radial drilling at oil and gas fields in the coming years to increase oil production.
The company will proceed to radial drilling at 25 oil and gas fields in the Kashkadarya region in 2012. The wells will be drilled on the Western and Eastern Tashly, North Shurtan, Garmistan, Yangi Karatepa and Kumchuk fields.
According to feasibility study of the project worth $30 million, it is planned to carry out drilling of radial shafts under a 90 degree angle.The project is planned to be implemented within three years. It will be financed by Uzbekneftegaz.
Uzbekneftegaz plans to invest $235 million to increase oil production on fields in the country in 2012-2020.
The company implements a program on deep drilling 100 facilities, with foreign companies offering experience with advanced technologies by 2021.
In particular, it is planned to introduce such technologies as underbalanced drilling method, enhancing oil recovery through seismic wave effects, radial drilling.
According to expert estimates, works on radial drilling on existing wells all over the country will intensify production and develop stranded reserves with an average growth in oil flow rate up to three tons per day and earn up and additionally produce up to 300,000 tons of oil annually.
China's CNPC, Korea's KNOC, Delta Oil Company from Saudi Arabia, Czech Eriell Corporation, Tethys Petroleum company are the main partners implementing the projects using modern technologies..
Gas projects
The explored gas reserves hit 2.44 trillion cubic meters, of which 1.89 trillion cubic meters fall to free gas, the remaining volume - casing-head gas, that is dissolved in oil and contained in gas caps of the oil fields.
Taking into account the current production volumes, Uzbekistan is provided with proven natural gas reserves for 31 years, oil - for 20 years, condensate - for 25 years.
It is considered that 75 percent of Uzbekistan's oil and gas resources are located in Karakalpakstan and surrounding Aral areas.
The reserves of "blue fuel" in Ustyurt are expected to hit more than 1 trillion tons in the long term prospect (25 years). The figure will hit about 60 percent of the total projected increase in natural gas reserves in the country.
Oil and gas are located at the depth between 1.500-2.500 meters in Aral zone. This is why it is economically beneficial to produce hydrocarbons here.
Uzbekneftegaz developed program to ensure the growth of the reserves of raw materials ranging from 75 to 112 million tons of fuel annually owing to further increase in the deep exploratory and parametric drilling has been developed in Uzbekistan until 2020. In particular, natural gas reserves of industrial categories will increase from 60 to 85 billion cubic meters annually, allowing to increase raw material reserves and gas exports.
Currently, three large "gas" PSAs are being implemented.
Kandym-Khauzak-Shady project
The PSA on oil and gas exploration in the Uzbek part of the Aral Sea was signed within the international consortium in August 2006. PSA on "Kandym-Khauzak-Shady" was signed for 35 years. The estimated cost of the project is $3.145 billion.
The consortium included "Uzbekneftegaz", Malaysian Petronas, Russian "Lukoil Overseas", the Korean KNOC and Chinese CNPC. According to the agreement, each of them has equal shares.
Petronas left the international consortium carrying out exploration in the Uzbek part of the Aral Sea under a production sharing agreement (PSA) in May 2011.
PSA for the Aral block was signed in 2006. It consists of two parts: exploration (the license was issued to the operator - "Aral Sea Operating Company" joint venture for five years) and the subsequent development of the discovered hydrocarbon reserves with a validity of 35 years.
The project was launched on January 31, 2007.
According to "Uzbekneftegaz", more than 30 anomalies connected with the oil and gas facilities may occur within the 12,500 square meter area of the Uzbek part of the Aral Sea.
It is planned to produce 11 billion cubic meters of gas a year within "Kandym-Khauzak-Shady-Kungrad" project.
Project on development of Southwestern Hissar
Lukoil Overseas completed a deal to purchase SNG Holdings Ltd group, including SoyuzNefteGaz Vostok Limited, which is a member of the PSA for the development of fields of the south-western Hissar and Ustyurt regions in March 2008.
The sum of the deal is $580 million.
Uzbekneftegaz is the second participant in the PSA as a state authorized body.
The PSA for this project was signed in January 2007 for a period of 36 years and entered into force in April 2007. "LUKOIL" joined the project in March 2008. The proved reserves at the block as of January 1, 2011 hit 1.417 trillion cubic feet of gas and 23 million barrels of oil and condensate.
Seismic survey 2D and 3D was completed in 2010. Ad a result, several prospective structures were revealed and two new fields - South-East Kyzylbayrak and Shamoltegmas were discovered.
Uzbekistan's share in the profitable production will hit from 55 to 80 percent depending on the profitability of the project.
Seven fields - gas condensate Jarkuduk-Yangi, Gumbulak, Amanata, Pachkamar and Adamtash, oil and gas condensate South Kyzylbayrak and oil Koshkuduk are situated in the contract area of South-West Hissar (Kashkadarya region). Small volumes of oil and gas condensate are being extracted in South Kyzylbayrak and Koshkuduk.
Lukoil Overseas, the operator of international mining projects being carried out by the Russian LUKOIL national company, extracted its first gas as part of a production sharing agreement (PSA) to develop gas reserves in south-western Hissar (Kashkadarya, south of Uzbekistan). The company extracted gas in the largest gas field of the block - Jarkuduk yangi Kyzylcha. The planned level of gas production is 16 million cubic meters per day (5.8 billion cubic metres a year).
According to "LUKOIL", it is planned to conclude key contracts for equipping the fields of Hissar group with necessary facilities and constructing the collection, treatment and transportation facilities (including "Adamtash" booster compressor station), to complete drilling out Hissar wells, to commission the first and second start-up complexes in "Jarkuduk".
Project on development of Urga, Kuanysh and Akchalak group fields
The company received a license for 35 years taking into account a five-year exploration period within the Production sharing agreement (PSA) between "Uzbekneftegaz" and Petronas to develop three fields - Urga, Kuanysh and Akchalak group in the Ustyurt region. The company's investment in the project will amount to $ 500 million by 2014. The subsidiary company - Petronas Carigali (Urga) Operating Company was established to fulfill the operations.
In September 2010, Uzbekneftegaz and Petronas signed a protocol on entering the production sharing agreement (PSA) on the Baisun Investment Block into force in Surkhandarya region for 35 years. The design capacity of gas production will hit 2.5 billion cubic meters within the project.
Petronas has carried out 2D and 3D field seismic surveys, testing the wells in the field Gadzhak and interpretation of the obtained data worth $ 80 million. As a result of these tests, the State Committee on Reserves at the Uzbek State Committee on Geology and Mineral
resources approved the amount of reserves in the deposit.
The preliminary cost of the project was originally estimated at $660 million. At present, the figure hits $1.527 billion.