Uzbekistan to develop ‘25 Years of Independence’ field
A consortium of investors plans to develop Uzbekistan’s “25 Years of Independence” gas field in the Surkhandarya region in the southern part of the country.
The first of two stages will begin 2017-18 with the drilling of a confirmation well and developing a feasibility study on expected reserves. The second stage will include field development, geological exploration, and the construction of a gas conversion facility and chemical complex to produce high value-added products.
Andrey Filatov has joined the consortium, which includes Gas Project Development Central Asia AG, Altmax Holding Ltd, and Uzneftegazdobycha. Surhan Gas Chemical Operating Company, established by members of the investment consortium to operate oil and gas PSA projects, manages the field development. Halliburton, Baker Hughes, Schlumberger, and National Oilwell Varco have been contacted for execution, according to a press release.
The 25 Years of Independence field will become a raw material base for the gas chemical complex in the Surkhandarya region, producing polyethylene, polypropylene, and sulphur.
Gas conversion is expected to deepen to produce olefins (ethylene glycol, rubber, polyethylene terephthalate, and other products). Currently the reserves of the 25 Years of Independence gas field and the O’zbekiston Mustaqillik investment block are estimated at more than 100 billion cubic metres.
Andrey Filatov will participate in the consortium through Brighttree Holding Ltd, a special-purpose vehicle which has taken a 50% stake in Altmax Holding Ltd. Therefore, the share of the new investor in the gas field development project will be 37.5%.
The project has a timeframe of 35 years and will cost an estimated US$2 billion.
The development of the gas field, one of the biggest in Uzbekistan, is stipulated in the production sharing agreement for the Independence of Uzbekistan (O’zbekiston Mustaqillik) block, signed on the 5th April during the state visit of Uzbekistan President Shavkat Mirziyoyev to Russia.
In April, the Uzbekistan broke ground on a five million-tonne/year grassroots refinery to be built in the country’s eastern Jizzakh region, which will cost an estimated US$2.2-billion.