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LUKOIL company starts equipping fields in southern Uzbekistan with necessary facilities

21 June 2013

"Lukoil Uzbekistan Operating Company" (operator of "LUKOIL" national company in Uzbekistan) has started providing "Gumbulak" and "Adamtash" gas fields with necessary facilities, as well as increasing the production in the Dzharkuduk-Yangi Kyzylcha field on the "Southwestern Hissar" block (Kashkadarya region, south of Uzbekistan), the company said.

According to the report, the major construction projects include a gas treatment unit with a capacity of up to 4.5 billion cubic meters of gas a year, a supporting base with an area of 15 hectares with a logistics warehouse, the fuel storage, utilities and a transformer substation.

Moreover, it is planned to drill more than 40 extractive wells, of which 10 have been already drilled, to build the external power supply lines, the raw materials collection system, tank gas pipeline at the fields.

Moreover, it is necessary to lay 132 km two-lane roads with a width of 8 meters and reconstruct 30 km of existing roads in accordance with the technical project to make them suitable for the heavy trucks with a load of up to 10 tons per axle and the weight of cargo up to 100 tons.

The facilities are planned to be commissioned in 2015. The total investment volume will hit more than 1.2 billion.

As of late 2012, the production volume reached 1.15 billion cubic meters of gas, while about 250 cubic meters in the first quarter of this year or 6 percent more than in the same period of last year.

The facilities with 'early gas' in the Jarkuduk-Yangi Kyzylcha field were put into operation within the project in December 2011.

According to the project, the fields reserves are estimated at 82.3 billion cubic meters and the maximum volume of production in the period of constant selection will exceed 4.2 billion cubic meters of gas per year.

In March 2008, LUKOIL Overseas, a subsidiary of Lukoil, concluded a 580 million deal on the purchase of SNG Holding Ltd., including Souyuzneftegaz Vostok Limited, a participant of PSA on development of fields in Southwest Gissar and Ustyurt regions of Uzbekistan.

LUKOIL is currently working in Uzbekistan on three PSA projects -Kandym-Khauzak-Shady-Kungrad and the development of the Southwest Gissar fields. It also conducts exploration of the Uzbek part of the Aral Sea within international agreements. At present, the accumulated gas production in the country exceeds 15 billion cubic meters.