President approves measures for implementation of first stage of Program for increasing hydrocarbons production
05/11/2017 10:03
President approves measures for implementation of first stage of Program for increasing hydrocarbons production
05/11/2017 10:03
Tashkent, Uzbekistan (UzDaily.com) -- President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures to implement the first phase of the program to increase hydrocarbons production for 2017-2021” on 3 November 2017.
The document said that ERIELL Oilfield Services Middle East DMCC (UAE) won a tender for construction of 248 gas and 48 oil production wells and development of Uzneftegazdobycha (Uzbek Oil and Gas Mining) fields on a turnkey basis. Tenders were conducted by Natural Gas-Stream JV LLC.
Enter Engineering Pte. LTD (Singapore) won a tender for construction of technological facilities at the fields of Uzneftegazdobycha on a turnkey basis.
The consortium of companies ERIELL Oilfield Services Middle East DMCC and ERIELL GmbH (Austria) will carry out overhaul of 328 wells in 2017-2018 at the fields of Uzneftegazdobycha, as well as modernize and deliver the equipment of subcontractors - divisions of Uzbekneftegaz.
At the same time ERIELL Oilfield Services Middle East DMCC in a consortium with ERIELL GmbH will carry out overhaul of 328 wells in 2017-2018 at the fields of Uzneftegazdobycha. They also modernize and deliver the equipment of subcontractors - divisions of JSC Uzbekneftegaz.
The resolution said that Natural Gas-Stream and Bank GPB International SA (Luxembourg) signed a short-term loan agreement for US$200 million for a period of 12 months with an interest rate of 3 months LIBOR + 4.7% per annum in the first interest period and a 1-month LIBOR + 4.7% per annum for subsequent interest periods, a commission for opening and reserving a credit line in the amount of 0.3% of the lending amount at a time and 0.5% per annum of the unused credit limit on the payment date accrued interest.
The head of Uzbekistan agreed with the proposals of Uzbekneftegaz and Natural Gas Stream JV on participation of Uzneftegazdobycha in trilateral contracts concluded for purpose of performing work at the fields of Uzneftegazdobycha within the framework of the Program.
The document said that the program will be implemented in stages: the first stage - in 2017-2018 and the second phase - in 2019-2021.
The President also approved total volume of natural gas, sold to Natural Gas-Stream in 2017-2018 to fulfill obligations on a short-term loan in the amount of 1.125 billion cubic meters (based on the estimated export price of natural gas US$185 per 1,000 cubic meters) with possibility of its adjustment in accordance with the agreement of the commission.
Shavkat Mirziyoyev also abolihed construction of a gasoline production plant from methanol (MTG) from the program.
The maximum cost of the first stage of the program to increase hydrocarbon production in 2017-2021 will be US$1.99 billion. Uzbekneftegaz will invest US$503.81 million into the program. The volume of foreign loans will exceed US$1.48 billion.
The maximum sum of capital investments in the program will be US$1.78 billion. Resources of Uzbekneftegaz will make up US$293.2 million and foreign loans - US$1.48 billion.
According to the document, about US$300.63 million will be spent to purchase of machinery and equipment, US$271.2 million for construction and installation works, US$1.16 billion for well drilling and US$48.7 million for capital repair of wells.
As a result, the growth of volume of gas production will make up over 6.35 billion cubic meters, 114,720 tonnes of gas condensate and 75,500 tonnes of oil. The estimated annual gas export volume will be 3.45 billion cubic meters of gas.
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