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Issues of supply of Uzbek gas to China discussed

19 September 2018 17:36 (UTC+04:00)
Issues of supply of Uzbek gas to China discussed

By Kamila Aliyeva

Representatives of Uzbekneftegaz JSC held a meeting with a delegation of the Chinese National Petroleum Corporation (CNPC) led by Vice President Hou Qijun, the Uzbek company's press service reported.

At the meeting, CNPC expressed gratitude for the positive results achieved in the process of drilling M-15 well of the Mingbulak field, as well as for the accelerated implementation of works on the development of the Khojasayat section of the Dengizkul gas condensate field and the Khojisayat, Khodjadavlat and Sharky Alat deposits.

During the talks, on behalf of the management and the entire collective of Uzbekneftegaz, CNPC was heartily congratulated on the 10th anniversary of the successful implementation of the Uzbekistan-China gas pipeline project.

Also, issues of supplying natural gas of Uzbek origin in winter and in 2019, as well as deliveries of natural gas of Uzbek origin from the field for the 4th string of the Uzbekistan-China gas pipeline were discussed.

Within the framework of the agreement between National Holding Company Uzbekneftegaz and the Chinese National Oil and Gas Corporation, a joint venture “Mingbulakneft”, which carries out geological exploration and development of the field, was established. The project is designed until 2035, its total cost is $ 255.3 million.

Uzbekneftegaz is an Uzbek holding company engaged in geological exploration, production, transportation, storage, processing and sale of oil and gas. It is the largest state company in Uzbekistan. The company is the 11th largest producer of natural gas in the world. Currently, the Uzbek authorities intend to involve the Asian Development Bank (ADB) in the corporate transformation of Uzbekneftegaz.

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.

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

Follow us on Twitter @AzerNewsAz

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