The Uzbek company Eriell has signed a gas production contract in Afghanistan, announced the Uzbek President’s Afghanistan, Ismatulla Irgashev today at the International Partnership Initiatives Week.
The 10-year contract includes investments of about $1 billion: $100 million in the first year and $900 million over the next nine years.
The document signing ceremony was overseen by the Afghan Vice Prime Minister in charge of Economic Affairs Abdul Ghani Baradar Akhund and the Envoy Ismatulla Irgashev.
Acting Minister of Mining and Petroleum Hidayatullah Badri noted that in the first two years, the gas produced will be used to generate 100 MW of electricity.
Ismatulla Irgashev added that the gas reserves of the Tuti-Maidan field are estimated at 3 trillion cubic meters on an area of about 7,000 square kilometers.
"Engineers and specialists are studying the restoration of 8 old wells ... After the start of gas development, several billion cubic meters of gas are planned to be produced in the first two years. According to the contract terms, Uzbekistan will invest $ 100 million in this field every year for 25 years and in 10 years will increase the investment to $ 1 billion in the development of the field," he said.
Ismatulla Irgashev added that the gas produced in Afghanistan will be transported through gas pipelines to Uzbekistan, processed and supplied for consumption on the Afghan market.
Eriell, an oilfield services group of companies, was founded in 2004. It provides well construction and workover services for companies in the oil and gas industry. Under the service contract with Uzbekneftegaz, Eriell performs drilling at the Alan, Urtabulak, Yuzhnaya Tandyrcha, Kuyi Surgil, Shimoliy Berdakh and 25 Years of Independence (M-25, where the customer is Surhan Gas Chemical Operating Company) fields. In July 2023, the company sold its subsidiaries in Russia.
