Lukoil in October set up a wholly owned subsidiary Lukoil Uzbekistan Operating Company in October to implement the project, involving the production of natural gas in Bukhara-Khiva region under a production sharing agreement.
Lukoil and Uzbekneftegaz signed a PSA for the project in June for 35 years. Investment is planned at $1 billion. Russia owns 90% of the consortium set up by Lukoil and Uzbekneftegaz and Uzbekistan owns 10%. The proven geological gas reserves in the contract zone total 283 billion cubic meters. Kandym is the largest field with more than 150 billion cubic meters of gas. Annual gas production will peak at about 9 billion cubic meters and total production will reach 207 billion cubic meters of natural gas. Commercial production will begin in 2007. The project also includes the construction of a modern gas chemical complex with capacity for 6 billion cubic meters of gas a year. The first phase will be opened in 2010. It also includes the drilling of 240 production wells and construction of 1,500 kilometers of pipeline. Two compressor stations, collectors, villages for workers, high voltage power lines, and a 40-kilometer railroad will be built as well. The product will be transported through the Gazprom system.
Lukoil and Uzbekneftegaz signed a 35-year PSA in June. Investment is planned at $1 billion. Russia owns 90% of the consortium set up by Lukoil and Uzbekneftegaz and Uzbekistan owns 10%.
Kandym is the largest field with more than 150 billion cubic meters of gas. Annual gas production will peak at about 9 billion cubic meters and total production will reach 207 billion cubic meters of natural gas. Commercial production will begin in 2007.
