Lukoil’s investments in hydrocarbon exploration and production in Uzbekistan increases by over 32 per cent

Oil&Gas Materials 27 November 2013 19:06 (UTC +04:00)

Tashkent, Uzbekistan, Nov. 27

By Demir Azizov - Trend:

Russian national oil company - Lukoil invested some $444 million in the first nine months of 2013 in the exploration and production of hydrocarbons in Uzbekistan, the company's message said.

According to the message, these figures are 32.5 per cent more than the figures for the same period of 2012.

In the third quarter of 2013, capital expenditures doubled and reached $185 million compared to the same period of 2012, the message said. It was reported that Lukoil is currently involved in three projects in Uzbekistan under production sharing agreements (PSAs) on Kandym-Khausak-Shady-Kungrad, the development of South-west Hissar, and is conducting geological exploration of the Aral Sea's Uzbek part within the international consortium. Currently the company's total natural gas production in Uzbekistan exceeds 20 billion cubic meters.

The message said that the planned production of natural gas by Lukoil is expected to reach 3.7 billion cubic meters in 2013, as part of the Kandym- Khausak-Shady-Kungrad project which has been implemented since 2004 in conjunction with the Uzbekneftegaz National Holding Company. Currently, a booster compression station is being constructed at Khausak. The station will be commissioned in 2014 and will provide production growth to 20 per cent a year.

In 2012 the volume of production at the deposits of South-western Hissar and Ustyurt region that is being realized since 2007 under the PSA with Uzbekneftegaz, reached the planned level, which stood at 1.1 billion cubic meters of gas per year. Investments in this project will amount to more than $1.2 billion, and gas production will amount to 4.2 billion cubic meters annually.

In total in 2013 Lukoil plans to produce four billion cubic meters of gas in Uzbekistan. The company also plans to increase production volume to 17-18 billion cubic meters of gas annually by 2020. The total investment that Lukoil plans to invest in projects in Uzbekistan will be more than $5 billion.