LUKOIL entered the South-West Gissar project in March of 2008. The project PSA was signed in January 2007 for a term of 36 years and took effect in April 2007. Operations within the Contract Area are conducted by LUKOIL Uzbekistan Operating Company (subsidiary of PJSC LUKOIL), the sole operator. The Contract Area in Kashkadarya Region in Uzbekistan covers 7 fields.
The agreement provides for field exploration and development, as well as prospecting activities, including prospecting and assessment at Karaumbet and Shunamai investment blocks of the Central Ustyurt, as well as additional exploration of the contract area in the South-West Gissar.
The produced oil is supplied to Bukhara and Fergana refineries via the Shurtan terminal. The raw stock from the South-West Gissar is processed under a contract with UDP Shurtanneftgaz. Marketable gas is sold in three export directions, including the North (Russia, Gazprom), the South (Kazakhstan, Gazprom) and and East (China, Petrochina).
In late 2011 early gas was produced at the Dzharkuduk — Yangi Kyzylca field, and in 2012 the field reached its design production. In 2014 the block’s production totaled 1.2 bln. cu. m of gas and 110 ths. tn of oil and gas condensate. In the spring of 2013 the South-West Gissar project entered its full development phase with commencement of production of on-site equipment, procurement of materials and equipment for pipeline construction, and start of large-scale infrastructure construction.
LLC LUKOIL Uzbekistan Operating Company (subsidiary of LUKOIL Overseas) and Uzbekneftegaz.
Group’s owns 100%.
Type of agreement: PSA, exploration and production (oil and gas).
Agreement signed in 2007.
Acquisition of project interest in 2008.
Agreement effective till 2043.
LUKOIL Overseas (a fully owned subsidiary of LUKOIL) closed a deal with JSC MGNK Souyzneftegaz to acquire a 100% interest in SNG Holdings Ltd., including Souyzneftegaz Vostok Limited, being a party to PSA made with regard to the South-West Gissar fields and Ustyurt region fields in the Republic of Uzbekistan. The deal was closed for 580 mln. USD. The other party to PSA, acting in the capacity of a competent governmental authority, is the National Holding Company Uzbekneftegaz. PSA was signed on January 23, 2007 for a term of 36 years and took effect on April 23, 2007.
Natural gas production started at the Dzharkuduk field, being a part of the South-West Gissar project.
Design production (of 1.1 bln. cu. m of natural gas) reached.
The “Gissar Full Development” project entered its implementation phase.
The drafting of design documents, manufacture and supply of equipment and early construction work under the “Gissar Full Development” project lasted for one year. Drilling of one (1) well was completed. Construction and assembly operations were conducted at the following facilities: access motor roads, substation, high-voltage power transmission lines, and field support base. Gas wells No. 74 and 75 at Dzhakurduk were put in operation.