Russian company LUKOIL and the Government of Uzbekistan will sign an additional agreement to the product sharing agreement (PSA) on project Kandym-Khauzak-Shady-Kungrad.
RIA Novosti reported that additional agreement will introduce amendments to economic parameters of the PSA, which will ensure favourable conditions to its realization.
The source of the agency said that the document will be signed within the exhibition and conference “Oil and Gas Uzbekistan – OGU 2016”, which is taking place in Tashkent from 18 to 20 May.
LUKOIL has been implementing the Kandym project in partnership with the National Holding Company Uzbekneftegaz since 2004 as part of the Kandym-Khauzak-Shady-Kungrad PSA. The PSA was signed for 35 years. In 2014, the agreement was prolonged by 7 years to 2046.
The Kandym group consists of 6 gas condensate fields – Kandym, Kuvachi-Alat, Akkum, Parsankul, Khoji and West Khoji.
The first phase of the project envisages mining and preparing 2.1 billion cubic meters of gas a year from Kuvachi-Alat field and Northern Shady area at Khauzak-Shady field with supply of gas to Mubarak gas processing plant.
The project envisages construction of Kandym gas processing complex in Bukhara region. The Kandym Gas Processing Complex will include construction of a gas treatment plant capable of processing 8.1 billion cubic meters of gas per year, as well as a natural gas gathering system, which, at its peak, will comprise 114 producing wells, 11 well pads and 4 gathering stations.