Azernews.Az

By Aynur Jafarova

Russia's energy giant Lukoil increased production of natural gas in Uzbekistan by 24.2 percent in 2012.

The company produced up to 3,265 billion cubic meters of gas in the Khauzak field and 992 million cubic meters of gas from the Gissar field.

In total, Lukoil produced in Uzbekistan 4,257 billion cubic meters of gas in 2012.

According to Lukoil, the company plans to produce at least 18 billion cubic meters of gas in Uzbekistan by 2016. By early 2014, gas production in the country will total nearly 10 billion cubic meters.

Earlier it was reported that Lukoil plans to invest over $678 million in two PSA gas projects in Uzbekistan - Kandym-Khauzak-Shady-Kungrad and South-West Gissar - under the country's state investment program.

The total cost of the two projects is over $4.34 billion, including the cost of the Kandym-Khauzak-Shady-Kungrad at $3.146 billion and the other project estimated at $1.196 billion.

The Kandym and Khauzak-Shady fields are located next to each other, close to the Uzbekistan-Turkmenistan border. The Kungrad block is located in Karakalpakstan in Uzbekistan. Exploration is currently underway at the block.

Lukoil plans to commission the Kuvachi and Alat fields located in the territory of the Kandym group, which consists of six gas-condensate fields, in 2014.

In 2014, Lukoil plans to commission the first phase of the complex with a processing capacity of 1.5 billion cubic meters of natural gas per year. Gas from the complex will be supplied to the Mubarek Gas Processing Plant (GPP) and from 2016 -- to the Kandym gas refinery.

The PSA for the South-West Gissar project was signed in January 2007 for 36 years. The contract area of ​​Kashkadarya where the field is located 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.

The fields' reserves are estimated at 82.3 billion cubic meters of gas and the maximum volume of production in the period of constant selection will exceed 4.2 billion cubic meters per year.

Annual production in the Gissar project is expected to reach 1.1 billion cubic meters of gas.

Lukoil also is carrying out geological exploration of the Western Aral structure along with Uzbekneftegaz, China National Petroleum Corporation (CNPC) and Korea National Oil Corporation (KNOC).

Lukoil assumes that the total volume of investments will exceed $5.5 billion, which will turn the company into the largest investor in Uzbekistan's economy.