FSU/ Eastern Europe: Uzbekistan

FSU/EASTERN EUROPE

Russia, Turkmenistan, Uzbekistan, Ukraine, Belarus and Lithuania by Alec Mikhalyants, Igor Polovets and Alex Chorine, RPI, Inc., a U.S.-Russian consulting firm, Moscow and Los Angeles

Uzbekistan

Last year was a period of relative political stability in Uzbekistan. President Islam Karimov secured a second term and continued to suppress Islamic opposition by his authoritarian rule. The economy fared well – GDP grew 4.4%.

Exploration / drilling. During the year, new drilling reached 295,290 ft. Geological exploration work was underway in all of Uzbekistan’s five oil- and gas-bearing regions – Usturt, Bukhara-Khiva, Gissar, Surhandarya and Fergana. Geophysical work and exploratory drilling intensified in the Usturt region in western Uzbekistan.

By 2005, Uzbekneftegaz plans to reach the target of 200,000 m (656,200 ft) in deep exploratory drilling per year, while investing $500 million to $600 million in exploration annually.

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Production / development. In 2000, Uzbekistan produced 148,975 bpd of oil and condensate, 7.7% less than in 1999. Gas output rose 1.2%, to 5.4 Bcfd.

Last year, the government reversed its policy of self-reliance in developing oil and gas, and decided to attract foreign investment. In April, President Islom Karimov signed a decree "On Attracting Foreign Investment in Oil and Gas Production." The decree stipulates several tax incentives and eases access to exploration and production for foreign investors.

Five projects to intensify output at producing and suspended fields were planned. Among them is a $25-million project to increase oil output at Umid and South Kemachi fields in the Kashkardarya region. Implementation of enhanced recovery will provide an increase of 2,000 bopd, 650 bcpd and 195 MMcfgd. Another planned project foresees a 1,000-bpd increase in oil production from Gazli field.

In May 2000, Romania’s RPT Holding and Uzbekistan’s Uzbeknefte-gazdobycha, part of Uzbekneftegaz, created a joint venture (Uzromneftegaz) to develop Zafar condensate field, in Kashkardarya. Value of the project is $10 million.