Russia's LUKoil company president Vagit Alekperov and Uzbekistan's President Islam Karimov agreed yesterday on the necessity to step up the preparation of basic documents concerning the $1b-worth Russian-Uzbek project on the development of the Khauzak-Shady and Kandym group deposits in Uzbekistan.
The sides discussed various aspects of the preparation of a joint project on the development of the said deposits and geological prospecting in the Ustyurt district of the Republic of Uzbekistan.
The Khandym-Khauzak-Shady project with the participation of LukOIl and the national holding company "Uzbekneftegaz" is one of the first projects to be implemented in compliance with the Uzbekistan law "On production-sharing agreements" adopted in 2001.
The project's total gas reserves are valued at 280 billion cubic metres while the gas condensate stock at eight million tons. The largest field to be developed under the project is Kandym, its gas reserves amounting to more than 150 billion cubic metres.
Investment in the Kandym-Khauzak-Shady project will total about $1 billion; its maximum output approximates 8.8 billion cubic metres of gas a year while the first stage will see merely 2.8 billion cubic metres a year.
The project also provides for the construction of a gas-and-chemicals mills with a capacity of six billion cubic metres of gas a year, the boring of 240 exploitation wells, the laying of more than 1,500 kilometres of gas-mains of different diameter and designation, two compressor stations, assembly stations, makeshift villages, high-voltage electricity transmission lines, a railway track about 40 kilometres long and quite a number of motorways.
The implementation of this project provides for the use of up-to-date gas-deposit-development technologies of world standards and the creation of many jobs in the gas and related industries, refresher and training courses for local personnel.
The LUKoil Overseas company opened its office in Tashkent in February 2003. After signing an agreement on production sharing, an operations group will be formed to implement the project in Uzbekistan.