Gazprom’s projects in Uzbekistan were launched in December 2002 when the Agreement on strategic cooperation in the gas industry was signed with National Holding Company Uzbekneftegaz.
Hydrocarbon survey, exploration and production areas in Uzbekistan (Ustyurt region)
Joint development of the Shakhpakhty field that was put into operation in April 1971 became a pioneer project.
The Feasibility Study was prepared in early 2003 for investment in the follow-up Shakhpakhty field development based on the production sharing agreement with subsequent construction of the UGS facility.
In April 2004 the Production Sharing Agreement (PSA) was signed for the follow-up field development. The project investment came from a consortium between Zarubezhneftegaz (present Gazprom zarubezhneftegaz) and Gas Project Development Central Asia AG (Switzerland). The 15-year PSA came into effect on July 30, 2004. Under the PSA terms and conditions the investor obtained licenses for the rights to use subsurface resources, to produce and sell gas.
In May 2004 Gazprom zarubezhneftegaz and Gas Project Development Central Asia AG established Zarubezhneftegaz – GPD Central Asia as the field operator to implement the PSA. In August 2004 Zarubezhneftegaz – GPD Central Asia commenced the operations on the re-entry of wells and natural gas production.
Concurrently with resuming natural gas production, the operator launched the project on constructing/upgrading the Shakhpakhty gas field infrastructure in the Republic of Uzbekistan for the follow-up development period with an intention to reach the design capacity for gas collection, treatment and transmission from the field to the Shakhpakhty booster compressor station (BCS) and further gas compression at the Karakalpakia compressor station.
In 2006 construction of the Shakhpakhty BCS and a gas treatment facility was finished, a modern field camp for rotational staff was built.
Between 2005 and 2008 several wells were overhauled with a view to expand the producing well stock and extend the well service life.
The total amount of gas produced from August 2004 through July 2010 comes to 1,597 billion cubic meters.
In the Republic of Uzbekistan Gazprom also implements a number of projects aimed at hydrocarbon fields exploration on the Ustyurt plateau. In January 2006 Uzbekneftegaz and Gazprom entered into the Agreement on the basic principles for geological exploration of the investment blocks in the Ustyurt region.
The aggregate C1+C2 reserves in the region are estimated at some 120 billion cubic meters of natural gas and some 7 million tons of condensate.
In December 2006 Uzbekneftegaz provided Gazprom with geological exploration licenses for 7 investment blocks. The overall investment in the geological exploration project is valued at USD 400 million.
In May 2009 the Dzhel natural gas field was discovered on the Ustyurt plateau.
Once geological exploration is accomplished (subsurface use licenses were granted for five years) Gazprom will have an exclusive right to participate in negotiations with the Republic of Uzbekistan on the discovered fields development under the Production Sharing Agreement.