Uzbekistan approves regulation to form hydrocarbon's exploration program
By Aynur Jafarova
The Uzbek Cabinet of Ministers has approved a regulation to form the exploration program of the Uzbekneftegaz National Holding Company.
The decree determines the procedures for the development, coordination and approval of long-term (for a period of five to 15 years), medium-term (up to five years) and the annual hydrocarbon exploration programs, local media reported on August 19.
The exploration programs are being developed by Uzbekneftegaz.
The long-term exploration program is conceptual and it determines the main directions of perspective development of the geological sector. It proceeds from priorities to enhance the country's hydrocarbon resource base, given the situation on the world market, advanced scientific and technical solutions in geological exploration, production and processing of hydrocarbon raw materials.
The parameters and criteria set out in the long-term exploration program in accordance with Uzbekistan's long-term socio-economic development strategy will be specified in the medium-term program.
The annual exploration program includes geological exploration to search for oil and gas reserves given the target parameters (direction, stage, types and exploration volume, expected outcomes, the amount of the planned appropriations by indicating the sources of their funding) for each project, as well as the expected timing of their implementation.
The long-term and medium-term exploration programs are approved by the Cabinet of Ministers, the annual programs by Uzbekneftegaz in coordination with the Economy and Finance Ministries, as well as the State Committee on Geology and Mineral Resources.
Uzbekistan is rich in hydrocarbon resources, and about 60 percent of its territory possesses potential oil and gas reserves. Uzbekistan ranks third among the countries of the Commonwealth of Independent States (CIS), and fifteenth among the countries of the world in terms of annual natural gas production.
The projected reserves of hydrocarbons are about 10 billion tons of standard fuel, while prospective ones amount to about 2 billion tons.
The country has discovered around 232 hydrocarbon deposits, including 183 gas fields. Around 103 of these fields are being developed, and 60 prepared for development. Exploration operations are underway at 69 fields.
There are five oil and gas regions - Ustyurt, Bukhara-Khiva, Surkhandarya, Hissar, and Fergana - and three promising ones -Khorezm, Middle Syr Darya and Zarafshan- in Uzbekistan.
Uzbekistan plans to increase the production of liquid hydrocarbon and natural gas by 2020. This is envisaged in the country's program for development of oil and gas industry in 2013-2020.
The production of liquid hydrocarbon and gas is expected to increase by 10 and five percent by 2020.
Official statistical data shows Uzbekistan produced 3.165 million tons of liquid hydrocarbons (oil, including gas condensate) and 62.911 billion cubic meters of gas in 2013.
As of January 1, 2014, recoverable hydrocarbon reserves amounted to more than 2.5 billion tons of fuel equivalent, about 65 percent of which fall to natural gas reserves in Uzbekistan.
Uzbekistan's proven recoverable hydrocarbon reserves amounted to more than 2.5 billion tons of standard fuel as of January 1, 2014, some 65 percent of which is natural gas reserves.