Tashkent, Uzbekistan, Nov. 11
By Demir Azizov - Trend: Tethys Petroleum Ltd, registered in Guernsey (Channel Islands, Britain), has launched a project to increase oil production at Chegara group of fields in Uzbekistan's Bukhara-Khiva region, a representative of the Uzbekneftegaz National Holding Company (NHC) told Trend on Nov. 13.
In May 2012 it was reported that the Uzbekneftegaz's subsidiaries, namely, AC Uzneftegazdobycha and JSC Uznefteproduct and the 100 per cent subsidiary Tethys-Chegara Production Ltd. signed a contract to increase the output of wells at Chegara .
The representative of the Uzbekneftegaz said that, the contract came into effect in September 2013, after its approval by a special resolution of the President of Uzbekistan in August 2013 and subsequent registration in government bodies.
The British company will carry out works during 25 years in line with the contract with its own funds. The works will cost $24.43 million and will be conducted for growth of oil production at the Chegara group of fields to the amount no lesser than 340,400 tons annually. According to the Uzbek sides estimates, the designed capacity of the output at the field may amount to 390 ton oil per day.
In addition, Tethys is committed to processing oil produced in Uzbekistan. The company will receive 50 per cent of the additional amount of oil as an income from the investments. It will also receive the right on the oil products produced from its share of oil, with their subsequent sale in the foreign market.
By the decree of Uzbek president, the subsidiary of the Tethys was provided with tax and customs benefits as part of the contract.
Since 2010, Tethys has been carrying out similar works in Uzbekistan to increase the production rate of the wells in North Utrabulak in Kashkadarya oblast.
The company also receives ready oil products in line with this contract in exchange for its crude oil and sells them for export.
According to Tethys, Chegara complex, which is located near to the North Utrabulak, is less developed, but has significant potential of additional production in the short term.