Uzbekneftegaz National Holding Company plans to create a joint venture to carry out geological exploration and field development in the Ustyurt region in the northwest of the country, local media quotes the company’s press service.
To this effect, Uzbekneftegaz is preparing an investment project on Geological exploration of investment blocks of Sechankul, Akdzhar and Chimboy, and development of Urga, Akchalak and Chandyr groups of fields, as stated on the holding’s corporate website.
The project envisages the creation of facilities for production of 1.5 billion cubic meters of natural gas and 76 thousand tonnes of gas condensate over the next 10 years. The total amount of investments might reach $700 million.
The project will be implemented through a foreign-invested joint venture on a parity basis, according to the company’s statement. It is also noted that the foreign partner shall be chosen by tender. Foreign oil and gas companies can submit their bids until 1st of February.
This year Uzbekistan plans on using foreign investments totaling over $4 billion, which will be destined at a total of 154 investment projects in various fields. The information appears in the investment program for 2016, which was approved by a decision of the Republic’s President Islam Karimov.
According to the program, the largest share of foreign investments, totaling over $2 billion, will support the development of 34 projects in the fuel and energy sector.
Gazprom International, the sole specialized Gazprom enterprise that operates in the areas of prospecting, exploration and development of hydrocarbons abroad, has been cooperating with the Republic of Uzbekistan as a foreign investor since 2002. In 2012, Gazprom International completed the multi-stage geological exploration program of the investment blocks of the Ustyurt region, which resulted in the discovery of Dzhel gas deposit in 2009. In addition, under the Production Sharing Agreement signed in 2004, the operator carries out construction and redevelopment of the Shakhpakhty field in Karakalpakstan. The total volume of natural gas produced in the area since 2004 exceeds 3 billion cubic meters.
Uzbekneftegaz National Holding Company is a vertically integrated three-level holding company that includes over 200 oil and gas enterprises of Uzbekistan. The capacities of the holding allow for production of 60-70 billion cubic meters of natural gas and 8 million tonnes of liquid hydrocarbons per year. This makes Uzbekneftegaz the world’s 11th producer of natural gas, as stated on the company’s corporate website.
There are more than 200 hydrocarbon deposits in Uzbekistan. Each year, 63-65 billion cubic meters of gas are produced in the country, 50 billion of which are consumed within the republic and around 13 billion cubic meters of gas are exported, mainly to Russia and China.