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Uzbek-Chinese JV launches gas production in Uzbekistan

07 December 2017 [14:18] - TODAY.AZ

By Azernews

By Kamila Aliyeva

Uzbek-Chinese joint venture New Silk Road Oil & Gas Company started gas production at the Khojasayat section of the Dengizkul deposit in Bukhara region of Uzbekistan, Uzbekneftegaz reported on December 6.

The construction of a gas condensate field and production drilling there began in late May 2017.

Within the framework of the site development program, two new wells were drilled and three previously drilled wells were overhauled.

Also, a modern automated control panel was built to monitor the production of natural gas in real time.

“In the near future, the joint venture plans to start development of Khodjadavlat and Sharqiy Alat fields, drill eight new wells, perform workover of three previously drilled wells, and lay 43 km gas pipeline,” the statement said.

The project is expected to allow annual production of 1 billion cubic meters of natural gas, which will be exported and about 6,500 tons of gas condensate will be realized on local market.

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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