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Uzbekistan, Russia extend PSA on development of Shahpakhty field

31 August 2018 [15:35] - TODAY.AZ

By Azernews


By Kamila Aliyeva

President of Uzbekistan Shavkat Mirziyoyev signed a decree on the extension of the license for joint gas production by Uzbekistan and Russia in the Shahpakhty field for another five years.

The current license for gas production expires in March 2019.

The intention to extend the license for another five years was signed in May 2018 by the heads of Uzbekneftegaz JSC and Gazprom PJSC at the St. Petersburg International Economic Forum (Russia).

The document provides for the continuation of gas production until 2024, according to the press service of the Russian company. Shakhpakhty is a gas condensate field discovered in 1962 in the southeastern part of the Ustyurt plateau in Uzbekistan.

The Shakhpakhty field was discovered in 1962, and its exploration was completed in 1968. As a result of the exploration, seven gas-bearing horizons were identified with initial reserves of 46.5 billion cubic meters of natural gas.

In 1971, the Shakhpakhty field was put into development with an annual production of 2.5 billion cubic meters of natural gas. Gas from the field is supplied to the booster compressor station “Shakhpakhty” via a gas pipeline. In February 2002, gas production was halted.

On December 17, 2002, Gazprom and Uzbekneftegaz signed an agreement on strategic cooperation in the gas sector, which determines the relationship between the two countries in the gas sector.

The agreement, in particular, provided for the joint implementation of projects in the field of natural gas production on the terms of production sharing agreements (PSAs).

As a result, the Shakhpakhty field was regarded a subsoil block, the right to use which is provided on the terms of the PSA.

The consortium, represented by Zarubezhneftegaz CJSC (Russia) and Gas Project Development Central Asia AG (Switzerland), was a project investor.

On April 14, 2004, the agreement on the division of products on the additional development of the Shakhpakhty field was signed in Tashkent. The validity of the Shakhpakhty PSA is 15 years.

Since August 2004, more than 4 billion cubic meters of gas have been produced at the Shakhpakhty field. The residual recoverable reserves of the field allow us to count on the successful continuation of the project.

In 2017, the volume of production amounted to 311.4 million cubic meters. As of August 15, 2018, the volume of production amounted to 176.4 million cubic meters of suburban gas.

The main partner of Gazprom in Uzbekistan is Uzbekneftegaz, which is engaged in the exploration, production, processing, transportation, storage and sale of oil and gas.

In 2006, Gazprom and Uzbekneftegaz signed an agreement on the basic principles of geological exploration of the subsoil of investment blocks in the Ustyurt region. In 2017, an Agreement on Strategic Cooperation was signed between Gazprom and Uzbekneftegaz.

URL: http://www.today.az/news/regions/173419.html

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