LUKOIL signs amendment related to a large gas project in Uzbekistan

On 20 May 2016, Russian company LUKOIL and the Government of Uzbekistan will sign an Amendment to the Product Sharing Agreement (PSA) for Kandym group of fields, Khauzak, Shady and Kungrad areas.
Deputy Prime Minister of the Republic of Uzbekistan Mr. Gulomzhon Ibragimov, Vice President of PJSC LUKOIL Mr. Sergey Nikiforov and Chairman of the Executive Board of National Holding Company (NHC) Uzbekneftegaz Mr. Alisher Sultanov signed the document in Tashkent.

The Amendment entails a number of adjustments to the economic indicators of Kandym-Khauzak-Shady-Kungrad PSA. Such adjustments will ensure more favorable project implementation conditions for the investors' consortium (PJSC LUKOIL and NHC Uzbekneftegaz).

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.

Source:  Uzdaily.com