Tashkent, Uzbekistan, Jan. 28
By Demir Azizov - Trend:
The LUKOIL company plans to complete its start-up operations at the booster compressor station in the Hauzak field in the Bukhara- Khiva region (south- western Uzbekistan ) worth $72.72 million in July, LUKOIL Overseas, the project operator, said on Monday.
At present, the oil system for the first of three compressors has been assembled. The oil system for the second and third compressors and air coolers will be also assembled, according to the report.
The company plans to sign a contract on mounting with compressor equipment supplier, German firm MAN Diesel & Turbo.
It was earlier reported that the LUKOIL Uzbekistan Operating Company (LUKOIL national company's wholly owned subsidiary in Uzbekistan) and Malaysia's KNM Group Berhad (KNM) signed a contract for the booster compressor station construction at the Khauzak -Shady section as part of the PSA on the Kandym-Khauzak-Shady block in 2011.
The production sharing agreement (PSA) on Kandim-Khauzak-Shady-Kungrad project was signed in 2004 for a period of 35 years. Participants of the PSA are LUKOIL national company with a 90 percent share and Uzbekneftegaz National Holding Company (NHC) with a 10 percent share. The investments in the project will exceed $4 billion.
The agreement envisages the development of the Khauzak, Shady and Kadim fields. Their total explored reserves amount to 214 billion cubic meters of gas and eight million tons of gas condensate.
LUKOIL started gas production in Uzbekistan under this PSA in autumn 2007. All the gas is exported beyond Uzbekistan through the backbone network of Gazprom JSC.
Currently, LUKOIL participates in the implementation of three projects in Uzbekistan under the provisions of the PSA. These include the Kandim-Khauzak-Shady-Kungrad, development of the South-western Hissar's fields. It also carried out geological exploration of the Uzbek section of the Aral Sea as part of the international consortium.
Totally, LUKOIL plans to produce at least 18 billion cubic meters of gas in Uzbekistan by 2016.
Translated by N.H, L.Z.
Edited by S.M.