Lukoil to Increase Gas Production in Uzbekistan
OAO Lukoil said cumulative production has reached 10 billion cu m of gas at Khauzak-Shady field in the Bukhara step region of Uzbekistan and that the company has adopted a field development plan under which it will raise output to 4 bcm/year from 3 bcm/year by 2012.
Development of Khauzak-Shady is a part of the Kandym-Khauzak-Shady-Kungrad project, which Lukoil is implementing in conjunction with state owned Uzbekneftegaz under a 35-year production sharing agreement that took effect in November 2004.
The Khauzak gas field was commissioned in November 2007. Lukoil’s share of proved reserves is 569 million BOE.
Lukoil plans to hike its natural gas production in Uzbekistan six-fold, in order to achieve a target output of 18 billion cubic meters of gas by 2017 said Andrei Kuzyayev, president of Lukoil Overseas.
Earlier this month, Lukoil stated that it intends to raise USD 500 million to finance the investment program of the Kandym field development and production enhancement at the Khauzak-Shady field. Lukoil has invested more the $1.5 billion in Uzbekistan to date in three projects and plans to boost its investment in the country to $5 billion.
Uzbekistan has the world’s tenth largest reserves of natural gas.