The National Holding Company (NHC) Uzbekneftegaz, Gazprom International’s partner for implementing energy projects in Uzbekistan, plans to invest up to $19 billion in the development of the oil and gas complex of the republic in 2015-2019. The head of the company Shokir Fayzullayev announced this on 13 May at the Uzbekistan International Oil and Gas Conference.
As reported by the Uzbek press, 54 investment projects with a total value of $18.65 billion are slated for implementation in accordance with the program for the modernization of the oil and gas industry through 2020 that has been approved by the country’s president Islam Karimov.
Projects for the construction of a gas processing plant and the development of the Kandym group of fields ($2.7 billion), a synthetic fuel factory (GTL, $3.98 billion), and new gas-chemical complexes ($4.4 billion) are included in the program, according to Shokir Fayzullayev. Thirty-nine projects worth $7.1 billion of the indicated total have been included in the targeted part of the program, he said.
According to the predictions of Uzbekneftegaz experts, this will make it possible to create new capacity for the extraction of 8.55 billion cubic meters of gas, 71.7 thousand tons of oil, and 161 thousand tons of gas condensate, as well as the production of 361.2 thousand tons of liquefied gas, 742 thousand tons of polyethylene, 500 thousand tons of polypropylene, 863 thousand tons of diesel fuel, and 304 thousand tons of kerosene.
In the opinion of experts from the Uzbekistan energy complex, the implementation of the program will ensure the growth of hydrocarbon raw materials at a volume of 623 million tons of standard fuel.
Uzbekistan ranks third among the CIS countries after Russia and Turkmenistan for the extraction of natural gas and is one of the world’s ten top gas-producing countries. Approximately 60 billion cubic meters of gas are extracted annually in the republic, some of which are exported to China and Russia.
According to assessments by the American industry journal Oil&Gas Journal, as of 2014 proven oil reserves in Uzbekistan were estimated at about 600 billion barrels (more than 80 million tons) and gas was estimated at 65 trillion cubic feet (about 2 trillion cubic meters).
Gazprom International, Gazprom’s unified specialized company for the prospecting, exploration, and development of hydrocarbon deposits outside the Russian Federation, has been cooperating with the Republic of Uzbekistan since 2002. Within the framework of the 2004 Production Sharing Agreement, Gazprom International is conducting construction and upgrading works at the Shakhpakhty field on the territory of Karakalpakstan. A total volume of about 3 billion cubic meters has been extracted there since 2004.
In 2012 Gazprom International completed its phased program of geological exploration works on the Ustyurt region investment blocks, and as a result the Dzhel gas field was opened in 2009. The total volume of investment in the gas exploration project in Uzbekistan is estimated at 400 million US dollars.
The National Holding Company Uzbekneftegaz is a vertically integrated company including a number of joint-stock enterprises engaged in the exploration, development, and production of hydrocarbon raw materials, their processing, storage, transport, and sale, as well as in the construction of oil and gas infrastructure.