Uzbekistan and Gazprom may sign second PSA by late 2013
Uzbekistan, Tashkent, May 13 / Trend, D. Azizov /
The Government of Uzbekistan and Gazprom plan to sign a production sharing agreement (PSA) to develop the Jal field in Ustiurt (north-west of the country) by the end of 2013, the chairman of the board of the National Holding Company (NHC) Uzbekneftegaz Shokir Faizullaev told reporters on Monday.
"We will make a decision by the end of the year and get to work on the project," Faizullaev said.
He noted that the PSA for the Jal deposit is part of a larger plan for the development of co-operation between Uzbekneftegaz and Gazprom.
According to the holding, Gazprom conducted exploration of the field, based on which it determined the availability of 14 productive horizons, reserves of which are currently approved by the State Commission on Reserves of the Government of Uzbekistan. Their amount was not disclosed.
According to preliminary calculations, the field's gas reserves could reach about 10 billion cubic meters.
PSA for the Jal deposit will be the second production sharing agreement implemented by Gazprom in Uzbekistan.
In August 2004, Gazprom started natural gas production from the Shakhpakhty field in Ustiurt with design capacity of 500 million cubic meters based on PSA with a 15-year term. The total cumulative gas production at Shakhpakhty currently exceeds 2.2 billion cubic meters. Gas production from the field increased by 1.4 times up to 300 million cubic meters by the end of 2012 compared to 2011.
In February of 2012, Gazprom announced the completion of exploration works in the Ustyurt region of Uzbekistan worth $400 million and the intentions to expand the raw material base of its projects in the country.