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    Lukoil Output Rises on Uzbek Gas Gains

Summary

The Southwest Gissar and Kandym projects now account for 40% of Lukoil's gas production.

by: Joseph Murphy

Posted in:

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

Lukoil Output Rises on Uzbek Gas Gains

Russia’s Lukoil increased gas production by 4.5% in 2019 to 35.05bn m3, on the back of growth at its projects in Uzbekistan, the private producer said on February 3.

Overall hydrocarbon output, excluding contributions from the West Qurna-2 field in Iraq, was up 1.3% at 2.350mn boe/day, driven by higher gas extraction. Oil production was flat at 85.88mn mt.

Production at Lukoil’s Uzbek projects climbed 7% year on year to 14.1bn m3, thanks to the second-stage launch of the Kandym gas processing plant (GPP) in 2018. In contrast, its gas output in Russia was virtually unchanged at 17.8bn m3.

Kandym is one of two major projects operated by Lukoil in Uzbekistan, the other one being Southwest Gissar. They are contracted to supply gas to China via the Central Asia-China pipeline system, but last year Uzbekistan’s national gas firm Uzbekneftgaz used some of their supplies to ease domestic shortages.