Transcript Panel 5-Oil & Gas Development in Uzbekistan

Integrating Central Asia into the World Economy:
The Role of Energy and Transport Ifrastructure
Washington, DC
October 22 and 23, 2007
Oil and Gas Development in Uzbekistan:
Options and Prospects
Akhmat Arslanov
TECHNOLOGY TRANSFER AGENCY, UZBEKISTAN
Development of Oil & Gas Industry
in Uzbekistan
•Exploration of oil fields in Uzbekistan started in
1885;
•Natural gas field found first in Uzbekistan in
1953;
•Transcontinental pipelines built when Gazli gas
field found and extortion started in 1962;
•Following development of Oil & Gas industry is
due to the increase in extortion of hydrocarbons
in Uzbekistan.
Gas and Oil resources in
Uzbekistan
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Up to day 203 hydro carbon fields found:
Gas and Gas Condensate fields -104;
Oil-Gas and Oil-Condensate Fields - 99;
Exploited - 48%;
Explored - 34%;
8 fields include all main gas resources, 2 of them yet
to be exploited;
4 fields include all main oil resources, all of them are
in exploitation;
Resources will allow to keep current extortion level:
Gas – for 30 years
Oil – for 21 years
Gas and Oil fields in
Uzbekistan
Oil
fields
Gas
fields
Gas Production in Uzbekistan
Oil Production in Uzbekistan
Main Indicators of Uzbekistan
Oil & Gas Industry in 2006
• Gas production - 55,6 mln cubic meters.;
• Oil and Condensate Production - 5,4 mln
tons;
• Sulfur production - 166,3 thousand tons.;
• NGL production - 225,9 thousand tons;
• Polyethylene production- 125 thousand
tons.
Primary energy consumption in
Uzbekistan in 2006
NATURAL
GAS 79%
OIL 16%
COAL 2%
HYDROPOWER
3%
Internal Energy Consumption
Gas & Oil
indusrty
needs,
12.40%
Consumed
by
population,
37.60%
Consumed
by other
industries,
50%
Most Energy Consuming Industries
Power
engineering,
50%
Statistical
discrepancies,
5%
Uzbek Gas &
Oil Industry,
20%
Other
industries, 17%
Chemical
Industry, 8%
Gas & Oil Production Portion in
GPD in Uzbekistan
Power Intensity of GDP
KWT/hour
KJ
World Bank Data
Gas Refinery
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Gas refinery:
- Mubarek Gas Processing Plant – more than 29 bln
cubic meters;
- “Shurtaneftegas” - 12 bln cubic meters;
- Shurtan Gas Chemical Complex -4,5 bln cubic
meters.
Refinery products:
- Dehydrated and purified gas;
- Sulfur;
- Condensate;
- NGL;
- Polyethylene.
Gas Transportation System
Total extent of 13 thousand km; carrying capacity 55 bln cubic meters
Gas Exports
• Gas export in 2006 -11,8 bln cubic meters
(current price - $100 per thousand cubic meters)
Gazprom - 9 bln cubic meters;
Kazakhstan - 1,45 bln cubic meters;
Kyrgyzstan - 0,7 bln cubic meters;
Tadjikistan - 0,65 bln cubic meters .
• Gas export planned for 2007 - 14,3 bln cubic meters
Russia - 13 bln cubic meters (including KazMunaiGas
SWAP operation - 3,5 bln cubic meters );
Kyrgyzstan - 0,7 bln cubic meters;
Tadjikistan - 0,65 bln cubic meters .
Oil and Condensate Production
• Oil and condensate produced by 3 Plants:
- Altiarik Refinery, Lubricants oriented production
3,2 mln tones;
- Ferghana Refinery Fuels oriented production
5,5 mln tones;
- Bukhara Refinery Fuels oriented production
2,5 mln tones.
Investment climate
• Favorable Investment Climate built for Oil &
Gas industry, including preferences and
privilege, further conditions improvement
planned;
• Realization of 78 projects included into
Uzbekistan Investment Program for 2007
attracting $ 1 billion of foreign investments.
Investment Climate
• Duty for use of mineral resources decreased in
January 2007:
- Oil production - from 35% to 20%;
- Gas condensate - from 32% to 20%;
- Natural gas from - 58% to 30%.
• Excise-duty decreased in January 2007:
– Gasoline -from 45% to 28%;
– Diesel - from 40% to 25%;
– Kerosene - from 20% to 8%.
Investment Effectiveness and
Dynamics at NHC “Uzbekneftegaz”
CDM prospects in Uzbekistan
(Oil & Gas)
• CDM National Body founded at Ministry of Economics
of Uzbekistan in December 2006;
• Number of PINs related to gas flaring at oil fields and
reduction of gas loses during transportation were
developed and registered;
• There is big potential in decreasing energy
consumption within oil and gas production and
transportation;
• PINs for 5 more projects are at preparation stage
today.
Gas flaring in Uzbekistan
Satellite photo (World Bank)
Uzbekistan Gas Flaring Estimated
From DMSP Data
Oil and Gas Development in Uzbekistan:
Options and Prospects
THANK YOU FOR YOUR
ATTENTION
TECHNOLOGY TRANSFER AGENCY, UZBEKISTAN