Zarubezhneftegaz and Uzbekneftegaz signed agreement to keep developing Shakhpakhty field
Today, in the city of Tashkent, the Zarubezhneftegaz company and the Uzbekneftegaz National Holding Company signed the Production Sharing Agreement to keep developing the Uzbek Shakhpakhty field.
Under the Paper, the Russian side will invest over USD 15 million for upgrading the field infrastructure. Profits realized from gas marketing will be distributed among the parties in equal shares (50/50).
Gas production at the Shakhpakhty field is planned to be resumed in the 2nd half of 2004 and the field will be fully furnished till the year-end. The parties intend to keep developing the Shakhpakhty field within another 13 years and to build up annual gas production up to 500 million cubic meters starting 2005.
“Joint development of the Shakhpakhty field is a pilot Russian-Uzbek project. Both parties are interested in promoting cooperation, in particular, in developing the Ustyurt oil and gas condensate fields,” – stated Valery Gulev, Zarubezhneftegaz’s Director General, at the Agreement Signing Ceremony.
The Shakhpakhty field was discovered back in 1962 and its original gas reserves accounted for 39.9 bcm. For the time being, the local recoverable natural gas reserves average 8 bcm.
In February 2002, gas extraction at the Shakhpakhty field was stopped due to the excessive equipment wear and tear.
The Zarubezhneftegaz company was established on 17 September 1998. 60.1% of the company’s shares are owned by Gazprom. Zarubezhneftegaz implements Gazprom’s foreign investment projects in the Middle and Near East, Southeast Asia and the CIS countries.
On 17 December 2002, the Uzbekneftegaz National Holding Company and Gazprom signed the Agreement on Strategic Cooperation in the Gas Industry. In particular, the Agreement envisages for the long-term procurement of Uzbek gas within the period of 2003–2012 as well as for jointly implementing natural gas production projects under the Production Sharing Agreement terms.
Information Directorate, OAO Gazprom