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LUKOIL determines priorities for 2014 in Uzbekistan

14 January 2014

LUKOIL's Board of Directors held a meeting in Moscow on 13 January to summarize the company's preliminary performance results from 2013 and set priorities for 2014.

In particular, the Board of Directors of LUKOIL determined priority projects, which will be implemented in Uzbekistan in 2014.

In line with the decision, implementation of the projects "Kandym Early Gas" and "Complete Development of Gissar" in Uzbekistan will be one of priorities of the Russian company in 2014.

"LUKOIL Uzbekistan Operating Company" LLC commenced implementation of the Project "Early Gas of Kandym Group of Fields and Development of North Par of Shady Block" in October 2013.

Concept of the Project provides for production of gas at Kuvachi - Alat field and its primary treatment at Kuvachi Gas Primary Treatment Facility, transportation of gas to North Shady Gas Primary Treatment Facility through pipeline 60 km long, production of gas at North Shady field and its primary treatment at North Shady Gas Primary Treatment Facility, transportation of treated gas from North Shady Gas Primary Treatment Facility to tie-in point of Dengizkul field - Mubarek Gas Processing Plant sour gas pipeline, then Dengizkul Booster Compressor Station.

Facilities to be constructed in the process of the first Project stage implementation include besides others 12 wells at Kuvachi - Alat field, 9 wells at North Shady field, field gas pipelines with total length of 130 km, two gas primary treatment units, motor roads 170 km long, renovation of 20 km of the existing motor road North - Shady - Dengizkul BCS, 150 km of power transmission lines, power substation at Kuvachi-Alat field, 13 bridges and crossings over existing canals, etc.

In the second stage of the Project implementation to be commenced in the second half-year 2014 it is planned to construct booster compressor stations at Kuvachi - Alat and North Shady blocks in order to meet engineering requirements to pressure and temperature of transported gas. At the same time it is planned to construct additional facilities at the fields, including drilling of new wells and their completion.

LUKOIL joined South-West Gissar project in March 2008. In the contract area of Kashkadarya region there are 7 fields, gas condensate fields: Adamtash, Dzharkuduk - Yangi Kyzylcha, Gumbulak, Amanata and Pachkamar, South Kyzylbayrak oil and gas condensate field and Koshkuduk oil field, with approved reserves of about 100 million TOE.

PSA for the project was signed in January 2007 for the period of 36 years and came into effect in April 2007. Investments into the project will exceed US$1.2 billion, level of gas production will be 4.2 billion cubic meters per year.