Surkhan Gas Chemical Operating Company (SGCOC) has launched exploration drilling in the Surkhandarya province in southern Uzbekistan under a Production Sharing Agreement (PSA), the Ministry of Energy said in a statement.
In April 2017, the Government of Uzbekistan signed a PSA with a consortium of investors - Gas Project Development Central Asia (GPD, a subsidiary of Gazprom International), Altmax Holding and Uzneftegazdobycha for the Uzbekistan’s Independence investment block with further exploration and development of the Mustakillikning 25 Yilligi (25th Anniversary of Uzbekistan’s Independence) field with the construction of a gas processing complex in the Surkhandarya province.
“The implementation of the Early Gas program has begun at the Mustakillikning 25 Yilligi gas field. The phase I of this program involves the drilling of exploration of wells, "- the statement said. SGCOC reportedly signed a contract with the Eriell group for the construction of 15 exploration and evaluation-production wells.
In March, the operator completed 3D field seismic exploration on an area of 160 sq.km. and proceeded to the 2D seismic along 400 km, the ministry added. The contractor is BGP, a wing of China National Petroleum Corporation.
The project will be implemented in two phases. During the US$ 2 billion phase I, in 2018–2022, it is planned to drill wells, develop the field, conduct exploration work on the investment block, build infrastructure and a gas treatment plant with a capacity of 5 billion cubic meters.
At phase II - from 2023 to 2025 - it is planned to build a 500 thousand tons per year polymers production capcity gas-chemical complex. The PSA for the development of the gas field “Mustakilliking 25 yilligi” with the construction of a gas processing facility is estimated at US$ 5.8 billion.