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LUKOIL builds gas processing plant in Uzbekistan

19 April 2016

Russian company LUKOIL commenced construction works of Kandym gas processing plant in Uzbekistan, representative of Uzbekneftegaz, national holding company said on April 19.

Lukoil's president Vahid Alakbarov and Uzbekistan's Prime Minister Shavkat Mirziyayev attended the foundation laying ceremony on April 19, company representative said.

A gas processing plant with an annual production capacity of 7.819 billion cubic meters of commercial gas, 134,360 tons of stable condensate and 212,900 tons of elemental sulfur is planned to be constructed during the first phase of the complex construction and development of Kandym fields.

Construction of 77 planned wells, six multiple-well platforms, two gathering stations, gas pipeline, rotational camp and external infrastructure are also under consideration.

It provides improvement of 77 planned wells, the construction of six pads, two assembly points, the export gas pipeline, shift camp sites and.

The first phase of the project is scheduled to end in December 2018.

In 2014, LUKOIL Uzbekistan Operating Company LLC (operator of LUKOIL's projects in Uzbekistan) and a consortium led by Hyundai Engineering (South Korea) signed a contract on a turnkey basis for supplying equipment, construction of a gas processing plant and development of Kandym fields which is worth to $2,662 billion.

It is the largest investment project of LUKOIL in Uzbekistan. Total amount of investments to the project is estimated at over $3 billion.

LUKOIL implements Kandym project since 2004 together with Uzbekneftegaz NHC under Kandym-Khauzak-Shady-Kungrad PSA.

Kandim group includes six gas condensate fields such as Kandym, Kuvachi-Alat, Akkum, Parsankul, Khodzi and Western Khodzi. In autumn 2007, the production commenced at Hauzak site.

In addition, LUKOIL implements South-West Hissar project in Uzbekistan. The PSA contract on this project was signed In January 2007. Investments allocated to the project will exceed $1.2 billion, and the volume of gas production will be 4.2 billion cubic meters per year. The gas production was launched at the end of 2011 within the framework of Hissar project.

Moreover, LUKOIL participates in the development of the Aral block in Uzbekistan.

Total amount of natural gas extracted under LUKOIL's projects in Uzbekistan amounted to more than 32 billion cubic meters in January 2016.