Uzbekistan plans to increase given to increasing hydrocarbon production
12/07/2019 22:25
Uzbekistan plans to increase given to increasing hydrocarbon production
12/07/2019 22:25
Uzbekistan plans to increase given to increasing hydrocarbon production, upgrading the gas transmission system, improving accounting and control of production, processing, transportation and sale of natural gas.
Uzbekistan adopted a resolution “On Measures for Stable Provision of the Economy and the Population with Energy Resources, Financial Recovery and Improvement of the Oil and Gas Sector Management System” on 7 July.
According to the document, priority is given to increasing hydrocarbon production, upgrading the gas transmission system, improving accounting and control of production, processing, transportation and sale of natural gas, as well as further analyzing and optimizing investment projects, strengthening financial discipline and improving pricing in the oil and gas industry.
As the Chairman of the Board of JSC Uzbekneftegaz, Bahodirjon Sidikov, noted at the press conference, long and painstaking work preceded the adoption of the document.
“The focus of this document is to provide domestic consumers with natural gas and oil products, which we ourselves produce at our enterprises. To accomplish this task, we need to ensure the accounting of natural gas at all stages of production and sales. By the end of 2020, the automated gas metering system should be fully implemented,” Sidikov said.
He added that the implementation of such a large-scale task requires the use of new technologies and large investments in the industry.
Answering a journalist’s question about the volumes of natural gas production in Uzbekistan, Sidikov announced for the first time information that was previously closed.
"Until recently, information on hydrocarbon production in Uzbekistan was confidential. But now we can talk about it openly. Currently, about 61 billion cubic meters per year are extracted in the Republic. Of these, 35-40 billion cubic meters of gas are produced by Uzbekneftegaz. 35-40 billion cubic meters is the difference between the gas we produce and what is used in various technological processes to increase oil production," Sidikov added.
It should be noted that the Presidential Decree determined that the most important task facing the JSC Uzbekneftegaz is to increase the annual production of hydrocarbons, including natural gas - from the current 35 to 42.3 billion cubic meters and liquefied gas - to 1.5 million tons by 2024, by stimulating cooperation with large transnational oil and gas companies, in particular, in fields with difficult-to-recover reserves and using modern technologies.
The document also emphasizes that measures should be taken to attract investments to Uzbekneftegaz (UNG) by means of a primary and secondary public offering of up to 49% of the shares no later than 2024. This means that, starting from the reporting period for the year 2019, the UNG is charged with ensuring the compliance of financial statements with international financial reporting standards and conducting independent external audits involving international audit companies.
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