Uzbekneftegaz to invest US$309m into project in Shortan field
14/04/2014 13:07
Uzbekneftegaz to invest US$309m into project in Shortan field
14/04/2014 13:07
Tashkent, Uzbekistan (UzDaily.com) -- President of Uzbekistan Islam Karimov signed a resolution of the Cabinet of Ministers “On measures on implementation of the investment project “Additional constructions at Shortan field with construction of booster station-2” on 9 April 2014.
The document was adopted to increase nature gas production due to maximum extraction of remaining reserves of hydrocarbons at Shortan field.
In the resolution, it was noted that Uzbekneftegaz implements this investment project with the volume of capital investments for US$309.5 million.
The project envisages drilling 18 exploitation wells, capital repair of 16 wells, expand current system of extraction and transportation of gas with construction of booster station to keep current production capacity at 9 billion cubic meters of natural gas a year.
Within the investment project, the tenders were held and contracts on supply of main technologic equipment for US$177.795 million were signed.
Uzbek leader approved feasibility study of the project with main technical-economic parameters. The project should be completed in December 2014.
The project will be financed due to own resources of Uzbekneftegaz for US$96.57 million and loan of the Fund for Reconstruction and Development of Uzbekistan (FRDU) for US$53.36 million, refinanced via Uzpromstroybank.
The FRDU loan will be issued for seven years with two year grace period. The interest rate set at 3.5% APR, including margin of the refinancing rate at the size of 0.5% APR.
People’s Bank of Uzbekistan will also allocate US$70.56 million to finance the project due to resources of the Accumulated Pension System. The loan is issued to seven years with two year grace period. The interest rate is set at 10% APR.
Uzbekneftegaz will also attract loans of commercial banks, including foreign banks, at the size of US$89.02 million.
Uzbekneftegaz was entrusted to attract loans of the banks, including foreign ones, within two months and sign corresponding agreements to implement the project.
Uzbekneftegaz is a debtor and executive body, which is responsible for implementation of the project and targeted use of loans, the resolution said.
The expenses, related to repayment and service attracted loans within the investment project, will be covered due to own resources of Uzbekneftegaz.
$ 1 | 12727.96 | +0.134% |
1 | 13781.84 | +0.459% |
₽ 1 | 139.46 | +0.288% |