Gazprom, Uzbekneftegaz to invest $700 million in gas production in Uzbekistan

Natural Gas-Stream JV, established by Uzbekneftegaz and Gas Project Development Central Asia, is investing more than $700 million in gas production in northwest of Uzbekistan. The corresponding decree was signed by the Cabinet of Ministers on June 17.

The project envisages geological exploration at Sechankul, Oqjar and Chimboy investment blocks, as well as development of Urga, Akcholoq and Chandir fields group.

In accordance with the feasibility study of the project, the volume of investments will amount to $701.4 million, including funds from the joint venture - $243.4 million and foreign loans - $458 million.

The design production capacity is 1.633 billion cubic meters of natural gas, 94.5 thousand tons of gas condensate, about 80 thousand tons of fuel. All gas produced at the site will be exported.

Natural Gas-Stream joint venture was established at the end of 2016 for exploration and development of gas fields in the Ustyurt region. On the Uzbek side, in addition to Uzbekneftegaz, the co-founders of the joint venture are Mubarekneftegaz and Ustyurtgas, on the foreign side, Gazprom, Altmax Holding, registered in Cyprus. Equity participation is not disclosed.