South-West Gissar Project

The South-West Gissar project comprises the development of seven oil and gas fields in the Kashkadarya region of Uzbekistan.

The site’s full development was achieved in September 2017, boosting the production rate to five billion cubic metres (bcm) a year.

A total of 3,500 workers and 250 employees were required to complete the facilities, as well as more than 350 pieces of equipment.

Lukoil subsidiary Lukoil Uzbekistan Operating Company is the owner and operator of the project.

Gissar is one of two projects currently being operated by Lukoil in Uzbekistan, the second being the Kandym-Khauzak-Shady project.

South-West Gissar project background

The assets related to the South-West Gissar project were acquired by Lukoil from SNG Holdings.

Lukoil signed a production sharing agreement (PSA) with the government holding company Uzbekneftegaz in January 2007 for a period of 36 years.

The project consists of the gas condensate fields Dzharkuduk-Yangi Kyzylcha, Gumbulak, Amanata, Pachkamar and Adamtash, in addition to the Southern Kyzylbayrak oil and gas condensate field and the Koshkuduk oil field.

Additionally, the PSA covers the Southern Kyzylbayrak and Koshkuduk fields. It also permits exploration and development in the contract area.

Reserves of the Uzbekistan project

The oil and gas-in-place (C1) of the project are estimated to be 100 billion cubic metres of gas and approximately six million tonnes of liquid hydrocarbons (oil and gas condensate).

South-West Gissar field development details

First gas production from the project’s early phase development was achieved from the Dzharkuduk-Yangi Kyzylcha field in late-2011.

New production wells and power supply lines, an oil gathering and a treatment system were also developed during the phase, as well as several access roads.

The project moved into the execution phase in 2013, which saw the development of the Adamtash and Gumbulak fields.

The Dzhakurduk gas treatment plant featuring a capacity of 4.4 billion cubic metres per year, and the Adamtash preliminary gas plant with a capacity of 1.8 billion cubic metres per year, were also built during the executive phase.

In addition, a gas gathering system, power supply system and network of motor roads were developed.

Lukoil commenced planning for the full development phase of the project in 2014. Additional motor roads, a substation and power lines were constructed during this period.

Furthmore, two wells at the Dzharkuduk field were put in operation. A total of 13 wells were in production at the field by the end of 2015.

Full development of South-West Gissar project

New production and operational facilities were commissioned at the Gissar project in September 2017 as part of the final stage of full field development.

The facilities included a 4.4 billion cubic metre gas processing plant, a gas pre-treatment unit and six gas gathering stations. In addition, 300km of power lines, two substations and 126km of roads were developed.

The project required the use of 64,000m³ of concrete, 12,000t of steel structures and 4,000t of equipment. In addition, 286km of linear pipelines were laid.

A total of 37 production wells are currently operational at the site.

Financing

The final stage of the full field development was executed via a $500m loan secured by Lukoil from a consortium of banks, including Intesa Sanpaolo Bank Luxembourg S, Natixis, Mizuho Bank, UniCredit, VTB Bank, ING Bank, AO Raiffeisenbank and Raiffeisen Bank International.

Processing and export

Oil produced from the field is transported to the Bukhara and Fergana refineries via the Shurtan terminal, while raw stock is processed by UDP Shurtanneftgaz.

Produced gas is exported to Russia, Kazakhstan and China.

Contractors involved

ERIELL Group was awarded the design and construction contract for the full development phase of the project.

GE was subcontracted by ERIELL to supply centrifugal compressors, while Flenco supplied auxiliary systems.