Monday, 04, March, 2024

Uzbekneftegaz has downgraded its gas production forecast for 2023 from 34.1 to 32.3 billion cubic meters (BCM), said Bekhzod Usmanov, First deputy chairman in charge of transformation.

“Production forecast is slightly lower. Somewhere at 1.8 BCM. This happened due to the fact that our forecasts for depletion of current [deposits] did not come true. They are depleting at faster rate. Our measures [to increase production] are not enough to maintain the production level at 34.1 BCM,” Bekhzod Usmanov said.

According to him, more investment were needed to carry out exploration work and discover new deposits.

Bekhzod Usmanov announced the gas production forecast until 2026 in November 2022 at the Tashkent Economic Forum. Then he said that in 2023 it is planned to produce 34.1 BCM of gas, including 1.8 BCM through geological exploration. But already in February, the forecast was reduced to 32.8 billion, and now to 32.3 BCM.

Judging by the schedule, natural production at current fields will continue to fall, since in order to maintain production at the level of 34.1 BCM in 2024, it is necessary to compensate for 4.6 BCM of gas through exploration, in 2025 - 7.1 BCM, in 2026 - 9.6 BCM.

Now, Uzbekneftegaz owns about 50% of all oil and gas fields (118 out of 290). Last year, production amounted to 51.66 BCM, which is 4%, or 2.1 BCM less than in 2021 (53.8 billion). Uzbekneftegaz accounted for 32.2 BCM (the forecast was 34 billion) or 62.3% of production, making the company the largest gas producer in Uzbekistan.

While also, in Uzbekistan, gas production in the first half of the year compared to the same period last year fell by 9.6%, or by 2.51 BCM, to 23.56 BCM.

Commenting on the sharp drop in gas production in Uzbekistan, Energy Minister Zhurabek Mirzamakhmudov said earlier that “the dynamics will change upward” from the second half of this year. According to him, the decline in gas production was mainly due to Uzbekneftegaz, since "75-80% of the company's fields have already been developed."

Latest in Economy