On 11-13 July, Bukhara, Uzbekistan’s ancient cultural center, hosted the second meeting of the working group with a focus on implementing the Agreement on joint exploration activities and engineering and innovation works between PJSC Gazprom and NHC Uzbekneftegaz. The said document was signed this April during the state visit of Mr. Shavkat Mirziyoyev, President of the Republic of Uzbekistan, to Moscow.
The meeting was attended by the following representatives of PJSC Gazprom headed by Mr. Vitaly Markelov, Deputy Chairman of the Management Committee: Mr. Sergey Tumanov, Managing Director of Gazprom International, Mr. Bolot Abildayev, Director General of Gazprom Kyrgyzstan, Mr. Yury Spektor, First Deputy Director General of Gazprom Promgaz, Mr. Maksut Anderzhanov, Director of the Gazprom International representative office in the Republic of Uzbekistan, and others.
The Uzbek delegation was represented by Mr. Alisher Sultanov, Chairman of the Board of Directors of Uzbekneftegaz, Mr. Bakhodyr Sidikov, Director of Neftegazinvest, and heads of relevant units belonging to the Republic’s energy sector.
The parties highly evaluated the prospects for bilateral cooperation and defined the priority steps towards further collaboration in the oil and gas sector. Particularly, the meeting discussed the current status of studying the promising investment blocks and preparing proposals for further exploration activities, the progress made in preparing the PSA for the Dzhel field, and the establishment of an Engineering and Innovation Center at the sectoral research institute of JSC O'ZLITINEFTGAZ, as well as, inter alia, issues pertaining to cooperation in underground gas storage.
Particular attention was paid to the coordination of the parties’ joint activities when implementing the Agreement on strategic cooperation between PJSC Gazprom and NHC Uzbekneftegaz signed on 2 June during the SPIEF. For that purpose, the partners established a Joint Coordination Committee (JCC) consisting of 5 representatives from each party. The JCC’s first meeting is scheduled for early September in Irkutsk.
Following the results of the meeting, the participants commented that relevant action plans for every promising area of cooperation had been prepared and approved at an expert level.
Gazprom’s major partner in Uzbekistan, the national holding company (NHC) Uzbekneftegaz engages in the exploration, production, processing, transportation, storage, and sale of oil and gas. By the Decree of the President of Uzbekistan dated 30 June 2017, the company was reorganized into a joint-stock company.
2002 saw the signing of an Agreement on strategic cooperation between Gazprom and Uzbekneftegaz envisaging Gazprom’s participation in natural gas production projects undertaken in Uzbekistan on a PSA basis.
From 2004 onwards, Gazprom has been participating in the recovery of gas production in the Shakhpakhty field on a PSA basis.
In 2006, Gazprom and Uzbekneftegaz entered into an Agreement on the basic principles of the geological study of subsoil resources in the investment blocks located in the Ustyurt region of the Republic. Gazprom International is the project operator. The Dzhel gas condensate field was discovered within the Shakhpakhty block in 2009.
In April 2017, Gazprom and Uzbekneftegaz signed a Contract stipulating that Gazprom would buy 4 bcm of Uzbek gas per year for up to five years from 2018 onwards and an Agreement on joint exploration activities and engineering and innovation works.
There are more than 200 hydrocarbon fields in Uzbekistan. Gas production here amounts to 60 bcm per year, of which 50 bcm are used for domestic consumption and approximately 10 bcm are exported mainly to Russia and China.