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NEWS

Gazprom to bring gas production in Uzbekistan up to 300 million cubic meters in 2012

13 December 2012

http://en.trend.az of 12/13/2012 - Gazprom EP International, operator of Gazprom's projects abroad, is increasing gas production in Uzbekistan by 1.4 times compared to the previous year - up to 300 million cubic meters, the company said.

"Natural gas production from the Shakhpakhty field reconstruction and redevelopment of which is carried out by Gazprom International since 2004, will be about 300 million cubic meters at the end of this year, or about 20 million cubic meters more compared to the design level," Gazprom International said.

According to the company, about 280 million cubic meters of gas has been produced from the field which is located in north-western Uzbekistan, and growth in output at Shakhpakhty amounted to almost 40 per cent compared to the previous tear.

During 2012, Gazprom International experts overhauled and commissioned five new wells. At present the operational fund deposits increased to 16 wells, the average gas production is 956,000 cubic meters. The total of 19 wells should be restored in accordance with the project.

The total volume of gas produced in Shakhpakhty since 2004 amounted to 2.1 billion cubic meters.

The Shakhpakhty gas field is located in Uzbekistan, in the south-eastern part of the Ustyurt. The field was discovered in 1962. The initial commercial gas reserves amounting to 46.5 billion cubic meters are approved as a result of exploration held here until 1968.

Commercial production began on Shakhpakhty in 1974 and amounted to 2.5 billion cubic meters per year. The Shakhpakhty booster station was commissioned in 1983. It was stopped due to insufficient power supply for the gas produced to the required inlet pressure in February 2002.

Then the production ceased and the wells conserved in accordance with the decision of the operating organisation. Some 36.5 billion cubic meters of gas which is about 78.5 per cent of the initial approved reserves was extracted from the field.

At present, the recoverable reserves at Shakhpakhty are estimated at eight billion cubic meters.

The reconstruction and development of Shakhpakhty is a pilot project of Gazprom International in Uzbekistan, which is being implemented on terms of a PSA signed for a period of 15 years in 2004.

In 2004, Zarubejneftegaz - GPD Central Asia Operating Company was created as an operator, and is currently one of Gazprom International's operating structures.

According to the agreement terms, the company carries out construction and field development, production and the transportation of raw materials, the construction of relevant infrastructure, gas cleaning, storage, and environmental activities, as well as other necessary related actions.

Gas production was restored at the field in August 2004; commercial flow was obtained from 10 wells. In 2006, the operating company completed repeated construction of Shakhpakhty booster station and a preliminary gas development installation, a modern camp was also built at the field.

The gas produced at Shakhpakhty is supplied to the Karakalpak compressor station, and then to consumers through the Central Asia - Center gas pipeline. The investment into the project amounted to $25 million.

Since 2004, as part of the license for development of four field formations, work is carried out on the overhaul of fields and the production of raw materials.

In 2010, the operator received a license for the development of three additional downstream production formations. In February of this year, Gazprom announced the completion of exploration in Uzbekistan's Ustyurt region totaling $ 400 million.

According to the country's State Statistics Committee, between January and September of 2012, natural gas production in Uzbekistan decreased by 1.4% to 45.595 billion cubic meters.