Russian oil company Lukoil is planning to increase steady gas production on Khauzak-Shady project (Bukhara region) from 3 billion to 4 billion cubic meters a year. The corresponding decision was adopted by the Central commission on project development.

According to Lukoil Uzbekistan Operating Company, commercial gas production at Khauzak-Shady project has been started in 2007. Within a year, over 90 km of power supply lines were laid and preliminary gas processing facility was built. The field gas pipelines and condensate pipeline were constructed. The project reached its designed capacity of 3 billion cubic meters in September 2008. In December 2010, the new project on development of Khauzak-Shady project, which envisages to increase gas production to 4 billion cubic meters a year.

Largest project of Lukoil in Uzbekistan is the development of the Kandym group, which comprises of six condensate fields with the projected gas production level of 8 billion cubic meters. In the development of the Kandym group gas fields, along with production capacities, the company will build a unique gas processing plant and modern engineering and transport infrastructure.

Lukoil President Vagit Alekperov said “Today we agreed with the government that the first early gas at Kandym will be received in 2014. The gas processing plant will be constructed in 2016. Everything goes as planned.”

Speaking about supply of gas to China, Alekperov stated that the company supplies [to consumers] gas through Uzbekneftegaz. He said that Uzbeknefetegaz is guarantor of the company’s investments and long-term partnership. Lukoil President said that the Uzbek company independently decides direction of gas to China or Russia. He added that the Russian company is interested in timely payments and today this system works.

Vagit Alekperov recalled that the company already invested over US$1.5 billion into the Uzbek projects and will direct US$3.5 billion next three-four years.

Lukoil said in its press release distributed at the briefing of Vagit Alekperov that the company plans to increase gas production volume to 17 billion cubic meters a year by 2017.