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NEWS

Lukoil says its South-West Gissar project receives approval

9 November 2012

http://www.uzdaily.com of 11/9/2012 - The Steering Committee approved the Part to Be Approved of the Working Project Documentation for development of South-West Gissar gas condensate fields, LUKOIL Uzbekistan Operating Company said.

Approval of the Part to Be Approved of the Working Project Documentation (analog of feasibility study) is an important milestone in Gissar group of fields development project, implemented by LUKOIL Uzbekistan Operating Company (LUOC) under Production Sharing Agreement.

Seven fields were found in South-West Gissar contract area. South Kizilbayrak and Koshkuduk oil fields are exploited by the Operator since 2008. Adamtash, Gumbulak and Djarkuduk - Yangi-Kizilcha gas condensate fields are being developed since 2010, at present drilling of operating well stock is being completed.

Early Gas facilities at Djarkuduk - Yangi-Kizilcha field, ensuring production of 1.1 bln. cubic meters of gas per year, were put into operation in December 2011: five operating wells, gas-gathering station, gas pipeline to South Tandircha gas-gathering station. However main increase in gas production is planned to take place after facilities of Full Development stage are put into operation. According to the project of development field reserves are estimated to be 82.3 bln. cubic meters of gas, maximum production volume in the stage of continuous extraction will exceed 4.2 bln. cubic meters of gas per year.

Surface facilities for Full Development stage are designed since March 2011 by KNM Process Systems (Malaysia). Set of design estimates, substantiating technical and economic expediency of accepted design solutions, from the point of view of operation and ecological safety of the facilities as well, was developed within the framework of preparation of the Part to Be Approved of the Working Project Documentation.

At the beginning of July of the current year the Part to Be Approved of the Working Project Documentation was submitted to State Committee for Architecture and Construction of the Republic of Uzbekistan for expert examination, on 5 September all required positive conclusions of Uzbekistan authorized bodies were received and 22 set of developed designed documentation was approved by the . So governmental agencies gave their approval for project implementation.

The project is implemented team of LUOC experts, experienced in various fields, with application of up-to-date systems and tools of project management. At present project team is developing working documentation, placing purchase orders for equipment and materials, holding tenders for facilities construction.

To ensure that the fields are put into operation on time it is planned to conclude contracts for construction of access roads, external power supply lines, 110/10 kV substations, field support base, meant for accommodation of operating personnel of the company, conduit, as well as process facilities, gathering systems and booster compressor station.

So Gissar project is coming into a new development stage and its successful implementation will result in substantial increase in production volume and considerable improvement in efficiency of LUKOIL Uzbekistan activity.