The corporation "Uzbekneftegaz" intends to invest over $320 million in drilling new gas wells, allocate $45 million for their repair, and spend $79.6 million on geological exploration, according to Uzbekistan's state program for 2024, Ritmeurasia reports.
The opening of 95 new wells and the resumption of work at 81 existing wells in Uzbekistan is expected. The planned volume of natural gas production by "Uzbekneftegaz" will be 29.3 billion cubic meters, which is 2.9 billion cubic meters less compared to the actual figures of 2022.
There is a significant discrepancy between the initial forecasts and the actual results.
In 2023, the company planned to produce 34.1 billion cubic meters of gas, however, it subsequently adjusted its expectations to 32.8 billion, and then to 32.3 billion cubic meters.
"Uzbekneftegaz" explains the difference between forecasted and actual production volumes by the accelerated depletion of deposits.
To address the situation, the company planned significant investments in the search for new deposits and modernization in 2023, including:
- Completion of the project to increase hydrocarbon production with investments of $1.15 billion from the Russian "Gazprombank" and the Chinese "Silk Road Fund";
- Implementation of a joint project with the Japanese MUFG for $20 million for well repair and drilling.
Nevertheless, according to the corporation's forecasts, gas production at current deposits will continue to decline.
What was the total volume of gas produced in Uzbekistan in 2023?
The total volume of gas produced in Uzbekistan in 2023 amounted to 46.7 billion cubic meters. This is 9.8% less than in 2022 when 51.7 billion cubic meters of gas were produced.
The decrease in gas production is due to the depletion of deposits and insufficient investments in geological exploration. It is expected that gas production in Uzbekistan will amount to 47.5 billion cubic meters in 2024.
To increase gas production, the Uzbekistan government is taking measures to attract investments in geological exploration and the development of new deposits.
In particular, in 2023, an agreement was signed with the Russian company "Lukoil" on the joint development of the "Kandym" deposit.
CentralasianLIGHT.org
March 20, 2024