Project Profile
Value: US$5,000 million
Location: Uzbekistan
Reserves: 329 billion cubic metres
Start-up Year: 2014
Capacity: 8.1 billion cubic metres of gas per year
The proven geological reserves of natural gas are 283 billion cubic metres. In total, Kandym-Khauzak-Shady-Kungrad project calls for drilling of more than 180 development wells and the construction of over 1,500 kilometres of pipelines. There will also be two compressor stations, gathering points, shift camps, high-voltage power lines, 40 kilometre railway line, highways and access roads at the project. The project calls for construction of a modern gas processing plant in the Kandym area with a capacity of 8.1 billion cubic metres of gas per year. The duration of the PSA is 35 years. The volume of approved original gas in place in the contract area totals 329 billion cubic metres.
The peak annual production of natural gas will reach approximately 12 billion cubic metres per annum, while the cumulative production under the project could reach 207 billion cubic metres of gas. Lukoil signed a production-sharing agreement for Khauzak-Shady-Kandym in 2004. In 2011 it is producing roughly 3 Bcm/yr from the Khauzak and Shady fields and aims to launch Kandym in 2014 to reach output of 8 Bcm-10 Bcm/yr by 2017.
Operators:
Lukoil Overseas: Operator with 90% interest
Uzbekneftegaz: 10% interest
Contractors:
Eriell Corporation: Drilling contractor
Hyundai Engineering Construction Ltd: Pre-FEED and FEED contract
KNM Process Systems Sdn Bhd: Compressor station construction contract
Sub-contractors:
Frames Group BV: Secured equipment-supply contract