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Uzbekistan plans to realize oil & gas projects worth over $30B

18 May 2017 11:41 (UTC+04:00)
Uzbekistan plans to realize oil & gas projects worth over $30B

By Kamila Aliyeva

Uzbekistan plans to implement a number of oil and gas projects with a total cost of $30.4 billion by 2021, according to the data from the National Holding Company Uzbekneftegaz.

Uzbekneftegaz started implementation of the program for 2016-2020 to increase production of ready export-oriented products, the company said.

The program, approved by President Shavkat Mirziyoyev, includes 74 projects on modernization, as well as technical and technological renewal of production in the oil and gas industry.

The Uzbek company said that the major projects envisage construction of a gas processing complex in the country’s Surkhandarya region, production of synthetic fuel at the Shurtan Gas Chemical Complex, construction of a new oil refinery in the Jizzakh region, etc.

In 1991-2016, total investments in the oil and gas industry were $30.7 billion, including direct investments and loans worth more than $17 billion, according to Uzbekneftegaz.

Uzbekistan is rich in hydrocarbon resources, and about 60 percent of its territory possesses potential oil and gas reserves.

The projected reserves of hydrocarbons stand at about 10 billion tons of standard fuel, while prospective ones amount to about 2 billion tons.

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.

Uzbekneftegaz is the national oil and gas company. Uzbekistan maintained state control over hydrocarbon resources following the end of the Soviet Union, forming the state company, Uzbekneftegaz, to manage the oil and natural gas sectors. The government initially made it a priority to focus on oil and natural gas production from existing fields to meet domestic demand, rather than investing in new reserves.

Russia's Lukoil and Gazprom and China National Petroleum Corporation (CNPC) are among the most heavily invested companies in Uzbekistan's oil and natural gas industries.


Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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