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Russian company to construct booster compressor stations at Uzbek gas fields

17 May 2014

Kazan Motor production association will implement construction of two booster compressor stations in the Alan and Shurtan fields in the Kashkadarya province in the south of Uzbekistan, according to the KMPO's regional representative in Central Asia, Alexander Saveliev.  The total cost of construction will amount to $254 million.  "The manufacturing of equipment has already started, and the implementation of the contracts on the BCS "turnkey" construction will be carried out by the end of the year," he told journalists at the International "Oil and Gas Uzbekistan - OGU exhibition. As stated previously, the "Uzbekneftgas" National Holding Company carries out projects on the additional development of the two fields - Alan gas and Shurtan gas condensate fields.  The total cost of the projects is $559.7 million, including the cost of the additional development project of the Shurtan field - $309.5 million, according to the up-to date information.  It is planned to drill 18 operational wells, overhaul of 16 wells, expansion of the existing system of collection and transportation of natural gas with the construction of BCS with the capacity of nine billion cubic meters of natural gas per year within the framework of the project. The project of additional development of Alan field worth $250.2 million, envisages the development of 27 operational wells and construction of BCS with the capacity of five billion cubic meters of gas per year.  The project's funding is carried out at the own expense of "Uzbekneftegaz" in the amount of $250.9 million, a loan from the Fund for Reconstruction and Development of Uzbekistan - $106.9 million, loans from local and foreign banks - 202.2 million.  Both fields were commissioned in the second half of 1970's. Fields' reserves are not disclosed.  At present, Uzbekneftegaz actively implements increasing of hydrocarbons production at a number of fields. Earlier it was reported that Uzbekneftegaz completed a project for further development of the Samantepe and South Urt-Bulak fields with the construction of a booster compressor station and "South Urt-Bulak - Mubarek Gas Processing Plant" pipeline at the cost of $310 mission in 2013.  It is scheduled to implement projects for further development of oil and gas fields at total cost of $2.35 billion in Uzbekistan by the end of 2020.  Uzbekneftegaz is the monopoly operator of the oil and gas sector of Uzbekistan. The company was established in 1998 and comprises six joint stock companies.  Uzbekistan holds third place among the CIS countries for the production of natural gas and is among the ten largest gas-producing countries in the world. Every year, the country produces more than 60 billion cubic meters of natural gas, about 25 percent of which is exported.