Uzbekistan is one of the core regions of LUKOIL’s operations. For years the Company has been consistently expanding its presence in the region, and is currently one of the largest investors in Uzbekistan.LUKOIL has conducted business in the Republic of Uzbekistan under production sharing agreements (PSA) made with regard to the projects of Kandym-Khauzak-Shady-Kungrad, South-Western Gissar, and Aral. The Company’s strategic partner in these projects is the National Holding Company (NHC) Uzbekneftegaz.
|LLC LUKOIL Uzbekistan Operating Company||Geological exploration, gas and condensate|
The contract, signed in 2004, provides for the development of the Khauzak and Shady blocks of the Dengizkul and Kandym group fields (Kandym, Kuvachi-Alat, Akkum, Parsankul, Khoji, Western Khoji), as well as the exploration of the Kungrad block. The contract area of Khauzak, Shady and Kandym Group of fields is 431 sq. km.
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South-Western GissarLUKOIL joined the South-West Gissar project in March of 2008. The contract area in the Kashkadarya Region in Uzbekistan covers seven fields. The project PSA for a period of 36 years took effect in April 2007. In 2012, the field reached its design production. In the spring of 2013, the Gissar full development project moved on to the Execution phase. In October 2014, the Company and ERIELL Corporation Sro. (Czech Republic) signed a turnkey contract for the design, procurement, and construction of surface facilities at the gas-condensate fields of Adamtash, Gumbulak, and Dzhakurduk-Yangi Kyzylcha. The main construction facilities include a 4.8 bln cu. m per year Dzhakurduk gas treatment plant, a 1.8 bln cu. m per year Adamtash preliminary gas processing terminal, a well products gathering system, a field support base, a power supply system, utility lines and motor roads.
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AralAral Sea Operating Company started its operations in the Uzbek Aral Sea, as provided by the production sharing agreement (PSA) in August 2006. The project is being carried out by a consortium of LUKOIL Uzbekistan Operation Company (LUOC), NHC Uzbekneftegaz and CNPC (China). Completed seismic surveys resulted in the discovery of the Western Aral field.
A PSA for the Kandym-Khauzak-Shady-Kungrad project was signed. LUKOIL started its operations in the Republic of Uzbekistan.
First gas was produced at the Khauzak-Shady field in the Bukhara Region.
LUKOIL joined the South-Western Gissar project.
First gas was launched at the Western Shady Block of the Khauzak-Shady field.
Early gas was produced at the Dzharkuduk-Yangi Kyzylcha field, as part of the South-West Gissar project.
LUKOIL received a Certificate of Appreciation from the State Taxation Committee of Uzbekistan, awarding the Company the title of the “Exemplary taxpayer contributing to the economic development of Uzbekistan”. LUKOIL received a Certificate of Appreciation issued by the Fire Safety Division of the Main Division of Internal Affairs for the First place taken in the city of Tashkent in the category “For excellence in ensuring fire safety of public amenities”.
LUKOIL received a Certificate of Appreciation issued by the State Taxation Committee of Uzbekistan, awarding the Company the title of the “Exemplary taxpayer contributing to the economic development of Uzbekistan”. LUKOIL received a Certificate of Appreciation issued by the Fire Safety Division of the Main Division of Internal Affairs for the First place taken in the city of Tashkent in the category “For excellence in ensuring fire safety of public amenities”.
LUOC and ERIELL Corporation signed a contract for the design, procurement and construction of surface facilities for the gas-condensate fields of Adamtash, Gumbulak, and Dzhakurduk-Yangi Kyzylcha, as part of the Gissar full development project.
A booster compressor station was commissioned at the Khauzak-Shady field.
LUKOIL Uzbekistan Operating Company received a certificate awarding it the title of “A Dream Company” according to JobFair 2015 visitors.
LUOC and a consortium of contractors led by Hyundai Engineering signed a contract in Tashkent for the supply of equipment, construction of a gas processing plant and development of infrastructure of the Kandym fields.
Two preliminary gas processing terminals at the Kuvachi-Alat field and the Northern Shady sector of the Dengizkul field in the Bukhara Region were commissioned, as part of the Early Kandym Gas project.
PJSC LUKOIL started the construction of the Kandym gas processing complex (GPC) in the Bukhara Region in southern Uzbekistan, which is a key production facility of the Kandym Gas-Condensate Fields Infrastructure Development Project. The ground-breaking ceremony for the Kandym GPC was attended by the Uzbek Prime Minister Shavkat Mirzieev, PJSC LUKOIL’s President Vagit Alekperov, representatives of the local authorities and key contractors.
LUKOIL has been active in pursuing a wide range of social policies in Uzbekistan, conducting sponsorship and charity activities, promoting education, culture, sports, healthcare and other spheres of social life, primarily in the regions of its operations, i.e. in the Kashkadaraya and Bukhara Regions.
The Company provides support to disabled individuals, supplies water to villages and remote locations, delivers encapsulated drinking water to boarding schools and assists in improving the sanitary conditions in educational institutions. It also organizes celebratory events attended by the students of rural schools and specialized boarding schools, etc.
LUKOIL is an active partner of the Tashkent branch of the I.M. Gubkin Russian State University of Oil and Gas (GRSUOG), set up in 2007 to train qualified professionals for the Uzbek oil-and-gas industry in accordance with the applicable international standards. Since 2008, LUKOIL has been providing support to the Tashkent Branch of GRSUOG by making contributions to its trustee fund, supplying furniture, training simulators and laboratory equipment.
The Company is greatly concerned about the environmental safety of its production facilities.
In addition to observing the Uzbek national environmental laws, the Company operates in full compliance with the international environmental and social sustainability standards. As required by the IFC operating standard No.6, the Company developed and successfully implemented its action plan to preserve the biodiversity of Dengikul, a lake protected by the Ramsar Convention. The plan provides both for a range of measures and dedicated ornithological monitoring of the entire lake area and accompanying awareness raising campaigns among the Company's personnel and local residents, highlighting the importance of biodiversity preservation in specially protected natural territories.
With facilities on desert terrains, the focus is on the biological reclamation, i.e. planting of drought-enduring and sand-reinforcing saxauls, development of comprehensive technological solutions in efficient water management, as well as environmentally safe and efficient disposal of waste water and solid waste.
In a similar vein, The Company has been pursuing a corporate citizenship program that includes landscaping and air improvement projects. In 2016, the Company volunteers taking part in the national charitable khashar (a Community Cleanup Day) planted an alley of 250 ornamental trees such as ash, maple, and chestnut, katsura and pagoda trees.