BAKU, Azerbaijan, Apr. 7
By Ilkin Seyfaddini – Trend:
The first quarter of 2020 was extremely active for Uzbekistan's oil and gas sector, Trend reports.
In January 2020, following the measures taken by Inspectorate for Control over Oil Products and Gas Use under the Ministry of Energy of Uzbekistan (Uzneftegazinspektsiya), a number of violations committed by regional oil depots in the sale of oil products were revealed.
The total amount of damage made up 24 billion soum ($2.5 million). In particular, at Takhiatosh Oil Base LLC (Republic of Karakalpakstan) and all branches of this enterprise, the inspectorate revealed the facts of theft, shortage of oil products and damage amounting to 9.7 billion soum ($1.01 million).
In late January 2020, Russia's Gazprombank announced that the bank is ready to invest in the development of "25 years of independence" field to build a gas chemical complex in Surkhandarya region.
In February 2020, Japanese company Marubeni Corporation and Uztransgaz agreed on introduction of SCADA system in the gas transportation system of Uzbekistan. The total cost of this project is estimated by experts at $1,5 billion. SCADA systems are used to monitor and control a plant or equipment in industries such as telecommunications, water and waste control, energy, oil and gas refining and transportation.
President of Uzbekistan Shavkat Mirziyoyev instructed JSC Uzbekneftegaz to analyze the state of wells at each field and ensure increased gas production, on February 6, 2020. Upon the instruction of the head of state, Uzbekneftegaz is carrying out restoration of gas production wells actively. During this period, the company repaired wells in Shimoli Berdak, Somontepa, Shurtan, Southern Kemachi, Sharki-Berdak and Arslan fields, and drilled an oil well in the Targachi village of Namangan region.
In addition, in February 2020, Uztransgaz announced the launch of the Gas Master Plan project jointly with ILG Business Consult GMBH (Germany) and Asian Development Bank.
As Uztransgaz reported, the main objective of Gas Master Plan is preparation of medium and long-term strategy for development of gas transport infrastructure in Uzbekistan, which will contribute to sustainable development of gas potential of the country, national and regional energy security in Central Asia and in the future will be the basis for creation of Central Asian hub in Uzbekistan.
At the end of February 2020, Canadian Condor Petroleum Inc. held negotiations with the Ministry of Energy of Uzbekistan on investments amounting to more than 1.2 billion dollars in exploration of new gas fields.
In early March 2020, Epsilon Development Company, one of the most active oil companies operating in Uzbekistan, announced that at that time hydrocarbons were produced from 46 wells, including 43 gas and three oil wells. Daily production during this period was: natural gas - 5.6 million cubic meters; condensate - 146.9 tons; liquefied gas - 81 tons; oil - 19 tons.
The company also started preparatory works for 3D seismic survey in the unexplored territories of Kultak-Kamashinsky and Mubarek investment blocks. A total of 2,000 square kilometers of 3D seismic is planned to be acquired this year.
In March 2020, Lukoil announced that the volume of capital investments in joint projects with Uzbekistan amounted to about $10 billion.
Upon the instruction of the president of Uzbekistan, Uzbekneftegaz is carrying out restoration of gas production wells actively. During this period, the company repaired wells in Shimoli Berdak, Somontepa, Shurtan, Southern Kemachi, Sharki-Berdak and Arslan fields, and drilled an oil well in the Targachi village of Namangan region.
The company also organized the sale of imported RON-92 gasoline and diesel fuel of European quality via its network of petrol stations.
Besides, in March 2020, Uzbekneftegaz JSC announced, that company starts the modernization of three units for production of propane-butane blend at Shurtan oil and gas production department worth $49 million.
It is planned that after implementation of the project, additional 61,000 tons of propane-butane mixture will be produced annually in Uzbekistan.
Moreover, in March 2020, Uzbekistan announced plans to modernize its largest oil refineries - Bukhara, Ferghana and Altyarik, with a total capacity of 11.12 million tons.
In particular, the modernization of Ferghana and Altyarik refineries, worth $875 million, is planned to be carried out in three stages by 2022 in partnership with American Honeywell UOP, French Axens and Danish Haldor Topsoe.
The modernization of the Bukhara Refinery worth $533 million is also planned to be carried out in three stages, but by 2025 in partnership with South Korean SK Engineering. After that the refinery will be able to process 2.5 million tons of oil and gas condensate per year.
On March 30, 2020, for the first time in the history of Uzbekistan, country started the production of environmentally friendly and high-quality diesel fuel of Euro-4 and Euro-5 classes.
Previously, Uzbekistan announced that from May 1, 2020, state regulation of retail prices for RON-80 gasoline and diesel fuel (including ECO brands) and their sale by oil refineries will be abolished.
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