Gazprom EP International Launches Development of Remaining Reserves In-place in Underlying Pay Horizons of Shakhpakhty Field.

Gazprom EP International continues to implement two projects in Uzbekistan, Shakhpakhty and Djel, in cooperation with the Ministry of Energy of the Republic of Uzbekistan and studies the prospects of participating in exploration.

The Company has been implementing the Shakhpakhty follow-up development project since 2004 under the Production Sharing Agreement (PSA). The field is in the southeast of the Ustyurt Plateau in the Qo‘ng‘irot District of the Republic of Karakalpakstan.

At present, the Operator carries out the workover of a number of wells to recover the remaining gas in place in the underlying pay horizons of the field. Field operations held in the first half of 2020 encompassed the extraction of more than 111 MMCM of natural gas. The cumulative production reached 4.4 BCM. The producing well stock at the field comprises 22 units; the on-going average daily production exceeds 700 MCM. Gas from the field goes to the Karakalpakia compressor station to be then delivered to the consumers via the Central Asia-Center gas pipeline.

In May 2018, Gazprom and Uzbekneftegaz inked the Supplementary Agreement for Shakhpakhty extending the PSA until 2024 with the same terms and conditions.

Also in 2018, during an official visit of Russian President Vladimir Putin to the Republic of Uzbekistan, an Agreement for the Djel field was signed. Launching PSA-based gas production is scheduled for 2021.

The field development project is now completed with ten wells drilled and connected, the Dzhel CPF built, and a 15 km flowline laid from the Djel CPF to the Shakhpakhty-BCS Sakhpakhty pipeline.

A feasibility study is being prepared to allow the parties, when approved, to start the project. According to forecasts, uninterruptible gas offtakes would be 150 MMCMPA during the first 4 years of development with a future increase of up to 300 MMCMPA.