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Uzbekneftegaz reveals date of approving its investment portfolio

Oil&Gas Materials 23 May 2018 11:26 (UTC +04:00)

Baku, Azerbaijan, May 23

By Fikret Dolukhanov – Trend:

The investment portfolio of Uzbekneftegaz JSC for the next 10 years will be approved in July 2018, Sputnik Uzbekistan reported on May 23 citing a source in the company.

“Uzbekneftegaz has already begun working on a concept for the long-term development of the oil and gas industry with involvement of international consulting companies. In total, investment projects worth over $9 billion are being implemented in the country's oil and gas industry,” a source in Uzbekneftegaz said.

The source said that investments in the oil and gas sector are considered to be the most liquid among long-term projects, therefore, more than half of all attracted funds to the economy of the country come to this sphere. While the volume of capital investments in the oil and gas sector amounted to $2.9 billion in 2016, in 2017 it grew to $3.6 billion.

To date, the share of Uzbekneftegaz in the country’s GDP is about 15 percent, with the fifth part of the state budget revenues being formed due to the company's activities. Company’s current capacity allows producing about 70 billion cubic meters of natural gas and 8 million tons of liquid hydrocarbons per year.

Nevertheless, over the past 15 years, the production of hydrocarbons in the country has declined significantly due to depletion of reserves and technological losses. According to official statistics, the production of natural gas in Uzbekistan increased by 0.5 percent in 2017 compared to 2016 – up to 56.4 billion cubic meters, whereas oil production decreased by 6.3 percent to 806,000 tons.

The main export markets for Uzbek gas are Russia and China. Small supplies are also made to neighboring countries. Supplies to Russia are provided through the Bukhara-Ural and Central Asia-Center gas pipelines. To China, the gas is supplied via three strings of the Central Asia-China gas pipeline.

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