Russia's Lukoil makes investment decision on Uzbekistan energy project
By Aynur Jafarova
Russia's oil giant Lukoil has made a final investment decision on the project to equip the gas condensate fields at South-West Gissar in the south of Uzbekistan, according to the website of Lukoil Uzbekistan Operating Company, the operator of Lukoil projects in the Central Asian state.
"The issue of passing the project into an implementation phase and the feasibility of making main investments has been resolved," the company said.
It said that while preparing the final investment decision, the approved part of the project was agreed. All necessary results were obtained from Uzbek experts. A peer review of the project and an independent evaluation were carried out by IPA Company.
The PSA for the South-West Gissar project was signed in January 2007 for 36 years and came into effect in April 2007. Lukoil joined the South-West Gissar project in March 2008. The contract area of Kashkadarya is operated by Lukoil Uzbekistan Operating Company, which is the single operator.
Seven fields are located in the contract area of Kashkadarya - Adamtash, Dzharkuduk - Yangi Kyzylcha, Gumbulak, Amanata and Pachkamar, oil and gas condensate field South Kyzylbayrak and Koshkuduk oil field with approved geological reserves of about 100 million tons of standard fuel.
According to the project, the fields' reserves are estimated at 82.3 billion cubic meters and the maximum volume of production in the period of constant selection will exceed 4.2 billion cubic meters of gas per year.
It is planned to drill more than 40 operating wells, to construct a line of external power supply, a system of collection and preparation of gas and engineering infrastructure facilities to ensure timely commissioning of the fields. A total volume of investments will exceed $1.2 billion.