BAKU, Azerbaijan, Sept. 1
By Klavdiya Romakayeva - Trend:
If an agreement between Uzbekistan and LUKOIL is reached, the total volume of gas sale for 2020 in Uzbekistan will amount to seven billion cubic meters, Trend reports via LUKOIL Uzbekistan.
LUKOIL said that from February through August 2020 it reduced gas production in Uzbekistan to about 20 percent of its design capacity due to a decrease in China's demand for Uzbek gas.
“Despite the fact that China is gradually resuming purchases of Uzbek gas, gas for export from our projects has not yet been supplied. We are negotiating with Uzbekistan and have reached a preliminary agreement on the sale of gas on the domestic market in 2020. We also negotiate on the resumption of gas exports from our projects,” said Pavel Zhdanov vice president for corporate development and investor relations of LUKOIL public joint-stock company.
LUKOIL admitted a loss of 39 billion rubles ($528 million) from impairment of exploration and production assets abroad, mainly due to Uzbekistan.
This affected the group's total hydrocarbon production in the first quarter, as well as in April and May.
If the agreement between parties on the sale of gas on the territory of Uzbekistan and the maintenance of production at the current level until the end of the year is reached, the total volume of gas sale for 2020 will amount to seven billion cubic meters.