BAKU, Azerbaijan, Oct. 23
By Klavdiya Romakayeva - Trend:
LUKOIL has increased the volume of gas production in Uzbekistan to 70 percent of its design capacity, Trend reports citing the press service of LUKOIL Uzbekistan Operating Company LLC.
At the same time, gas production at the Kandym group of fields in Uzbekistan has been fully restored to 100 percent. Today the average daily production of hydrocarbons amounts to 30,000 tons per day.
At the beginning of 2020, a decrease in demand and a subsequent decrease in gas prices on international markets due to the coronavirus pandemic led to a decrease in gas consumption in the world, including a decrease in the production and export of Uzbek gas.
As a result of falling demand for gas in China, LUKOIL's gas production in Uzbekistan in 1H2020 was reduced to 20 percent of the design capacity.
In 2Q2020, LUKOIL recognized a loss of some $51.8 million from the depreciation of production assets abroad, mainly in Uzbekistan ($47.8 million).
LUKOIL is implementing large-scale projects at the Khauzak-Shady, Kandym, and Gissar fields with a total investment of about $8 billion within the framework of production sharing agreements with Uzbekistan. Uzbekistan's income from cooperation with LUKOIL has now exceeded $4 billion.
LUKOIL, following Russia's Rosneft Oil Company, received a net loss in the first half of the year which amounted to 65 billion rubles ($86.4 million). Like the industry as a whole, the company was negatively impacted by falling oil prices and the need to cut production as part of the OPEC+ deal. The company's revenue fell by 33 percent.
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