Russian Lukoil invests $ 660 million in Uzbekistan`s gas projects in 2013

Oil&Gas Materials 12 March 2014 10:57 (UTC +04:00)

Tashkent, Uzbekistan, March 12

By Demir Azizov- Trend:

Russian National Company LUKOIL invested $ 660 million in gas projects implementation in Uzbekistan in 2013 which is 38 percent higher than in 2012, corporate newspaper of "Lukoil Overseas" (operator of international upstream- projects of Russian company) reported on March 11.

At present, LUKOIL works on the implementation of three projects in Uzbekistan in accordance with the production sharing agreement (PSA) - Kandim - Hauzak -Shady, on the development of the Southwestern Hissar field, as well as conducts exploration of the Uzbek part of the Aral Sea as part of the international consortium.

The total cost of the first two projects is $4.34 billion. This includes $3.146 billion for the Kandim-Hauzak-Shady project, and $ 1.196 billion for the Southwest Hissar project.

The PSA on the Kandim-Hauzak-Shady project was signed in 2004 for 35 years. Gas production in the Hauzak-Shady area began in 2007. The West Shady area began production at the end of 2011, and is expected to be commissioned 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 Kandim group in Uzbekistan which consists of six gas-condensate fields.

LUKOIL also plans to commission the first gas processing plant (GPP) in 2014 with the processing capacity of 1.5 billion cubic meters of natural gas per year.

The PSA for the Southwest Hissar project was signed in January 2007 for the period of 36 years. Seven fields are located in the contract area : Adamtash, Jarkuduk-Yangi Kizilcha, Gumbulak, Amanat and Pachkamar gas condensates South Kyzylbayrak oil and gas condensate and Koshkuduk oil condensate approved with geological reserves of about 100 million tons of conventional fuel. Annual gas production from these fields is expected in the volume 4.2 billion cubic meters per year.

Gas production started in Uzbekistan's Hissar project in late 2011 in which annual production is expected to reach 1.1 billion cubic meters.

LUKOIL plans to produce at least 18 billion cubic meters of gas in Uzbekistan by 2016, according to the company.
LUKOIL is one of the largest foreign investors in Uzbekistan. Since 2004, the company invested more than $3 billion in the economy.

The LUKOIL Uzbekistan Operating Company (subsidiary of LUKOIL Overseas Holding representing the interests of LUKOIL in the international oil and gas sphere) is the operator of the projects in Uzbekistan.

Translated by S.I.
Edited by C.N.