29.10.2018

Gazprom International and Uzbekistan Signed PSA on Dzhel Field

Gazprom International and Uzbekistan Signed PSA on Dzhel Field

On 18 October, in Tashkent, Gazprom International (Gazprom EP International B.V., the operator of Gazprom foreign up-stream projects) and the Republic of Uzbekistan signed a Product Sharing Agreement regarding the Dzhel field.

Andrey Fick, Managing Director and CEO of Gazprom International, signed the PSA on behalf of the company. Alisher Sultanov, Deputy Prime Minister of Uzbekistan, put his signature from the side of the Republic of Uzbekistan.

“In less than ten years together with our colleagues from Uzbekistan we have made a long way from prospecting and discovery to inking the PSA. The Dzhel project is logical evolvement of long-lasting and profound relationships between Gazprom and NHC Uzbekneftegaz”, - said Andrey Fick at the signing ceremony. “This PSA is a new step in the development of strategic partnership between Russia and Uzbekistan in the field of new projects implementation.”

Besides commercial profit from the Dzhel project implementation, Uzbekistan will benefit from new workplaces, further development of modern technologies and the mineral resources base. Moreover, in the words of Andrey Fick, this project will provide a training ground for a whole new stratum of highly qualified human resources in the Republic.   

The Dzhel field was discovered within the Shakhpakhty investment block in 2009. It is located on the Ustyurt Plateau in the Kungrad region of Karakalpakstan, the Republic of Uzbekistan, 225 km away from the regional center Kungrad, 15 km from the Shakhpakhty field.

Geological structure of the Dzhel filed is classified as very complex, and by the number of pay zones – a multilayer one.

The Dzhel field development project implies drilling and infrastructure development for ten wells, construction of the Dzhel CPF, laying the 15 km flowline from the Dzhel CPF to the Shakhpakhty - BCS Sakhpakhty pipeline, and other works.

Annual gas recovery, as expected, will reach 150 million cubic meters of gas within first 4 years (2021-2024) and will rise up to 300 million cubic meters per year starting from 2025.

The PSA duration period is currently set to 25 years.

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