Shakhpakhty Project

The implementation of Gazprom's projects in Uzbekistan began in 2004, when a consortium of companies involving Gazprom Zarubezhneftegaz (Gazprom International Limited) and Uzbekneftegaz signed a 15-year PSA on reconstruction and additional development of the gas and condensate field Shakhpakhty.

Background: The gas and condensate field Shakhpakhty is located in the southeastern part of the Ustyurt Plateau in the Qoʻngʻirot District of the Republic of Karakalpakstan in Uzbekistan. It was discovered back in 1962. The exploration works continuing till 1968 confirmed the commercial gas in-place reserves in the amount of 46.5 billion cubic meters. In 1971 the filed was brought into production. In total, since putting into production, 48 wells have been drilled in the field Shakhpakhty. The commercial production on the Shakhpakhty began in 1974 and amounted to 2.5 billion cubic meters per year.

A booster compressor station (BCS) Shakhpakhty was put into operation in 1983, it was stopped in 2002 due to insufficient capacity to boost the produced gas under the required inlet pressure. At the same time, by the decision of the operating company the production from the field was stopped and the wells were suspended.

The project of additional development of the Shakhpakhty field is aimed at recovering the remaining reserves of 7 gas-bearing horizons.

The field development operator, Operating Company Zarubezhneftegaz — GPD Central Asia, was established in 2004 to perform oil and gas operations under the PSA, it immediately began workover operations on the wells and put the field into production in August of the same year (having recovered 10 wells).

The Operator's office is located in Nukus, the capital of Karakalpakstan.

In 2006, the Operating Company completed the field infrastructure development having created a virtually new, modern facility with a comfortable field camp, construction of a new booster compressor station Shakhpakhty and a gas treatment unit.

In 2010, the Operating Company obtained the development license for three additional lower pay zones of the Shakhpakhty field that allowed to ensure a stable production level and increase the reserves recovery factor.

In May 2018 at the Saint Petersburg International Economic Forum, Addendum No. 2 to the PSA on additional development of the Shakhpakhty field was signed. The PSA was extended until 2024 under the same terms and conditions.

In August of the same year, Shavkat Mirziyoyev, President of Uzbekistan, signed Directive No. PP-3911 on Additional Measures for Further Implementation of the Production Sharing Agreement on Additional Development of the Shakhpakhty field in the Ustyurt Region, the Republic of Uzbekistan.

Produced gas is treated and delivered to the Karakalpakia Compressor Station and then to consumers via the Central Asia — Center gas pipeline.