Investments in joint project of SOCAR, Uzbekistan to develop Ustyurt estimated at $2 bln

BAKU. July 28 (Interfax) - Total investments in the project to develop six investment blocks in the Ustyurt oil and gas region of Uzbekistan under the production sharing agreement (PSA) with the State Oil Company of the Azerbaijan Republic (SOCAR) are estimated at $2 billion, the Uzbek business publication Spot.uz said, citing a report by the local TV channel Uzbekistan 24.

"According to forecasts, the largest field with oil reserves of 100 million tonnes and natural gas of 35 billion cubic meters is planned to be found in the six investment blocks of the Ustyurt oil and gas region. It is assumed that it will be possible to produce 5 million tonnes of oil annually, which is 2.5-fold more than the volume of imports, after the launch of the project on the Ustyurt plateau," according to the report.

"About $2 billion in investments will be developed as part of the three stages of the project. According to experts, it is planned to find a field that will fully cover domestic consumption," said Adhamjon Ubaydullayev, head of the main department of Uzbekistan's Energy Ministry, said in the report.

As reported, Uzbekistan's Energy Ministry, SOCAR and Uzbekneftegaz state oil and gas company signed a PSA on July 24 that envisages exploration and subsequent hydrocarbon production at investment blocks in the Ustyurt oil and gas region, namely Boyterak, Terengkuduk, Birgori, Haroy, Karakalpok, and Kulboy.

Under the terms of the PSA, there are plans to conduct 3D seismic surveys in an area of at least 1,000 square km and begin geological exploration work on one well based on the results. In the event of the discovery of hydrocarbon deposits of commercial significance, the parties will begin the stage of their development and subsequent production.

SOCAR will act as the operator at the initial stage of the PSA during geological exploration in order to identify promising areas.