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Uzbekistan's Uzbekneftegaz keen to join Azerbaijan's Shah Deniz gas condensate project

Oil&Gas Materials 21 May 2024 14:23 (UTC +04:00)
Uzbekistan's Uzbekneftegaz keen to join Azerbaijan's Shah Deniz gas condensate project
Lada Yevgrashina
Lada Yevgrashina
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GUBA, Azerbaijan, May 21. Uzbekneftegaz, a state-owned holding company of Uzbekistan's oil and gas industry, may join the Shah Deniz gas condensate project on the Azerbaijani Caspian shelf, Uzbek Minister of Investment, Industry and Trade Laziz Kudratov told reporters on the sidelines of the 2nd Azerbaijan-Uzbekistan Interregional Forum in Guba, Trend reports.

"We are inviting Socar (the State Oil Company of the Azerbaijan Republic) to participate in oil and gas production projects in Uzbekistan and are in discussions regarding this collaboration. Similarly, the issue of Uzbekneftegaz's involvement in gas production projects in Azerbaijan, specifically the Shah Deniz project, is now in its final stages. Shared participation is the subject of ongoing negotiations," he explained.

Kurbatov expressed hope that the documents formalizing Uzbekneftegaz's entry into Shah Deniz will be signed in the coming months.

"Our involvement in this project necessitates substantial financial and legal expertise, with assistance from a foreign consultant. We are committed to these prospects," he emphasized.

To note, the Shah Deniz project has been active since 1996, with the field development deal renewed in 2013 to continue until 2046.

The current participants in the project are bp (production operator with a 29.99 percent stake), Lukoil (19.99 percent), TPAO (19 percent), NIKO (10 percent), and SGC Upstream (representing Azerbaijan's interests with 21.02 percent).

The Shah Deniz gas reserves are estimated at 1.2 trillion cubic meters, with roughly 20 percent extracted.

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