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    Chinese-Uzbek JV Starts up Gas Field

Summary

An Uzbek-Chinese joint venture has started producing gas from the Khojasayat gas field, part of the Karakul block.

by: Ilham Shaban

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Natural Gas & LNG News, Asia/Oceania, Corporate, Exploration & Production, Investments, News By Country, Uzbekistan

Chinese-Uzbek JV Starts up Gas Field

An Uzbek-Chinese joint venture has started producing gas from the Khojasayat gas field, part of the Karakul block in Uzbekistan. Comprising also three other fields Dengizkul, Khodjadavlat and Sharky Alat, the block is expected to be developed by 2020 and produce 1bn m³/yr at plateau,  state Uzbekneftegaz said December 5.

The report did not mention the production level of the Khojasayat field, saying only that the venture had drilled five wells and built 47 km of gas pipeline.

In 2006, CNODC (subsidiary of CNPC) signed an agreement with Uzbekneftegaz for geological exploration at five investment blocks – Aralomorsky, Samsko-Kosbulak, Karakul, Romitan and Karadjida-Gumkhaninsky – for five years, then they established the joint venture in 2013 to develop them.

The exploration cost of the block has reached $260mn and the additional cost of developing it is estimated at $377.5mn. In the near future, the JV plans to begin developing of Khodjadavlat and Sharky Alat, with drilling eight new wells and overhauling three old wells as well as construction of 43 km pipeline.

The country planned a 1.5bn m3/yr gas production growth in 2017, the report said. Uzbekistan produced 55bn m³ gas in 2015.