By Kamila Aliyeva
The Uzbek-Chinese joint venture New Silk Road Oil & Gas Company Ltd will launch arranging and production of gas on the fields of Karakul investment block, located in Bukhara-Khiva region in the second half of 2017, according to the investment program for 2017.
A feasibility study of the project on ‘Arranging the Khojasayat section of the Dengizkul deposit, Khojadavlat and Sharky Alat fields of the Karakul investment block, located in Bukhara-Khiva region’ worth $377.5 million is approved by the government, according to the document.
The feasibility study envisages that, when reaching the designed capacity, 869.6 million cubic meters of natural gas and 6,400 tons of condensate will be produced annually in the fields.
The China Petroleum Engineering & Construction Corporation (CPECC), a subsidiary of China's CNPC, will be contracted to develop the fields and will carry out the design, logistics, construction and commissioning of infrastructure facilities for the development of gas fields in the Karakul investment block.
Drilling of 11 production wells will be carried out by XIBU Drilling Engineering Company Ltd, while repair and testing of production wells at the Karakul investment block - China National Logging Corporation.
The project will be financed by Chinese loans under the guarantee of China National Petroleum Corporation.
In 2006, China National Oil Development Corporation (CNODC, part of the CNPC structure) signed an agreement with Uzbekneftegaz for geological exploration at five investment blocks within the Ustyurt, Bukhara-Khiva and Fergana oil and gas regions during five years. To implement the project, an operator - CNPC Silk Road Group was created.
In 2011, the Chinese company fully completed the geological exploration program in the amount of 8.9 million linear kilometers of 2D seismic and 1 million kilometers of 3D drilling with 13 exploration wells. The total investment amounted to $260.2 million.
As a result, three fields, promising for industrial gas production, were discovered on the Karakul block. Volumes of reserves of deposits are not yet announced.
In 2013, Uzbekneftegaz and CNODC created on a parity basis a JV New Silk Road Oil & Gas Company Ltd for arrangement of gas condensate fields Dengizkul, Khojadavlat and Sharky Alat (Karakul investment block), opened by a Chinese investor in the course of their own exploration.
Initially, the implementation of the project for development of these fields was planned to begin in 2014, then in 2015 and 2016, but these plans could not be realized.
Currently, in Uzbekistan, CNPC participates in the implementation of the project for construction and operation of Uzbek part of the Turkmenistan-China gas pipeline system.
Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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