Lukoil begins drilling 3rd exploratory well at Shege in Uzbekistan
TASHKENT. Aug 12 (Interfax) - Russian oil major Lukoil has begun drilling a third exploration well at the Shege structure in Uzbekistan, which is part of the Kungrad block (itself part of the Kandym-Hauzak-Shady-Kungrad project).
Projected well depth is 3,100 meters, Lukoil Uzbekistan Operating Company LLC, a Lukoil subsidiary, has said.
Two such wells have already been drilled and the hydrocarbon deposit opened. Seismographic work was conducted that made it possible to clarify the geological structure of the section and to detail the deposit. Reserves were recalculated on the basis of the seismic work and C3 reserves increased to 5.4 million tonnes of standard fuel.
The winner of the Lukoil Uzbekistan Operating Co. tender for building the third well at Shege was the Czech group Eriell.
The Kungrad block lies within the Kungrad and Muinak regions of Karakalpakia on the left bank of the river Amudarya. It covers 3,700 square kilometers, and the trunk gas pipelines Central Asia - Center and Bukhara-Ural run nearby.
A production sharing agreement for the Kandym-Hauzak-Shady-Kungrad project was signed June 16, 2004 for a term of 35 years. Its partners are Lukoil (operator, 90%) and the national holding company Uzbekneftegaz (10%). Total investment is estimated at over $4 billion.
The agreement envisions the development of deposits of the Hauzak, Shady, and Kandym group. Combined known reserves come to 214 billion cubic meters (bcm) of gas and 8 million tonnes of condensate. Lukoil plans to produce more than 12 bcm of gas and upwards of 200,000 tonnes of liquid hydrocarbons per year here. Part of the project is prospecting the Kungrad block at Ustyurt, where probable resources are estimated at 100 million tonnes of oil equivalent.