Uzbekistan, Tashkent, 26 Feb. / Trend, D. Azizov /
Russian oil company LUKOIL plans to invest 678.55 million in two PSA projects in Uzbekistan, Kandym-Khauzak-Shadi-Kungrad and Southwest Gissar (Kashkadarya region in the south of Uzbekistan) under the state investment program of the country.
The total cost of the two projects amounts to $ 4.34 billion, including the Kandym-Khauzak-Shadi-Kungrad at $ 3.146 billion and Southwest Gissar at $ 1.196 billion.
The PSA on Kandym-Khauzak-Shadi-Kungrad was signed in 2004 for a term of 35 years. Production of gas in the Khauzak-Shadi section started in 2007, and in the West Shadi - in the end of 2011.
The northern part of the Shadi section is expected to start operation in 2014 with a substantial increase in production.
The Russian company plans to commission the Kuvachi and Alat fields in 2014 on the territory of the Kandym group which consists of six gas-condensate fields.
Also, in 2014, LUKOIL plans to commission the first phase of the complex with a processing capacity of 1.5 billion cubic meters of natural gas per year. It is expected that the contract for the project will be signed in 2013. Gas prepared at the complex will be supplied to the Mubarek Gas Processing Plant, and from 2016 - to the Kandym GPP.
The PSA on the Southwest Gissar was signed in January 2007 for a term of 36 years. The contract area includes seven fields: gas condensates Adamtash, Dzharkuduk-Yangi-Kyzylcha, Gumbulak, Amanat and Pachkamar oil and gas condensates South Kyzylbayrak and oil condensate Koshkuduk with recoverable reserves of nearly 100 million tons of equivalent fuel. Annual gas production from these fields is expected to reach 4.2 billion cubic meters per year.
In late 2011, production of gas within the Gissar project, annual production of which is expected to reach 1.1 billion cubic meters, began.
According to the company, LUKOIL plans to produce at least 18 billion cubic meters of gas in Uzbekistan by 2016. By early 2014, gas production in the country will total nearly 10 billion cubic meters.
Besides the development of the Southwest Gissar and Kandym-Khauzak-Shady-Kungrad fields, LUKOIL performs geological exploration of the Western Aral structure along with Uzbekneftegaz, CNPC and Korea National Oil Corporation.
Total investment of LUKOIL in Uzbekistan will amount to nearly $ 5.5 billion by 2015.