JV New Silk Road Oil And Gas set up by UzbekNeftGaz (UNG) and Chinese CNODC (a subsidiary of CNPC) commenced the develoment of gas condensate fields in Bukhara province.
The equally owned JV was created in September 2013 to carry out follow-up exploration and development of Karakul investment block. Three gas condensate fields - Khojadavlat, East Alat and Khojasayat part of Dengizkul field discovered during geological exploration works in Karakul block have become the raw material base for the company.
An inauguration ceremony of the development works commencement at Khojasayat section was held recently. On the licensed section it is planned to develop the existing wells and drill another 16, with the annual production to reach 1 billion cubic meters of natural gas and 6,500 tons of condensate.
"Following the talks with the leadership of CNPC During the visit of President Shavkat Mirziyoyev to China, the sides sorted out the financing of the project, and this will speed up its implementation," a source in the holding said. According to him, CNPC has signed a loan agreement with Chinese banks to finance the project.
The $ 378 million project will be financed through UNG’s own funds, as well as Chinese loans under the CNPC guarantee.
In June 2006, UNG and CNODC signed an agreement to carry out exploration work on five investment blocks within the Ustyurt, Bukhara-Khiva and Fergana oil and gas regions of Uzbekistan. The amount of investments in five years amounted to US$ 359 million.
