Gazprom and Uzbekneftegaz to continue joint gas production at Shakhpakhty field
RELEASE
Release
Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, and Alisher Sultanov, Deputy Prime Minister of the Republic of Uzbekistan, Chairman of the Board of Directors of Uzbekneftegaz, today signed at the St. Petersburg International Economic Forum 2018 the Supplementary Agreement No. 2 to the Production Sharing Agreement for the follow-up development of the Shakhpakhty field.
The document was signed in the presence of Alexey Miller, Chairman of the Gazprom Management Committee.
According to the document, the parties will continue to produce gas until 2024 on the same commercial terms, using the production capacities created earlier.
Background
In 2017, Gazprom purchased 5.5 billion cubic meters of natural gas from Uzbekistan.
Gazprom’s main partner in Uzbekistan is Uzbekneftegaz (prior to July 2017 – Uzbekneftegaz National Holding Corporation) focused on oil and gas prospecting, production, processing, transportation, storage and marketing.
In 2006, Gazprom and Uzbekneftegaz inked the Agreement on the basic principles of geological exploration at investment blocks in the Ustyurt region of Uzbekistan. In 2017, the companies signed the Agreement of Strategic Cooperation.
Shakhpakhty is a gas and condensate field discovered in 1962 in the southeastern part of the Ustyurt plateau in the Kungradsky District (Republic of Karakalpakstan, Uzbekistan). Workover and follow-up development of the Shakhpakhty field is carried out under the 15-year Production Sharing Agreement signed in 2004.