It was noted that Gazprom International, an operator of foreign projects of Gazprom on search, exploration and development of hydrocarbon fields, fully executed its obligations within the stage-by-stage programme on geologic exploration of Ustyurt region of Uzbekistan. In the result, the expert assessments on seven perspective oil and gas fields at 16 fields were given.

In order to explore licensed territories, Gazprom drilled 20 exploration wells with total volume of works for 73,000 meters. In 2012, the company also carried out supplementary exploration at Dzhel field, which was opened in 2009. The company completed 3D seismic exploration at the volume of 200 square kilometers and drilled three new wells.

In the result of geological exploration works, the company revealed 14 productive horizons, reserves of which were approved by the State Commission on reserves under the Cabinet of Uzbekistan. The company also conducted exploration works at Kumoy field.

Gazprom International continued to implement a project and further development of Shakhpakhty field in northern-western Uzbekistan in Kungrad district of Karakalpakstan. As of 20 December, the company produced 290 million cubic meters of gas, which exceeds project volume by 7%. The growth of gas production will make up at least 40% in 2012 compared to 2011. In 2012, the company reconstructed five of 19 wells, which is planned to rehabilitate within the project.

Currently, specialists of Gazprom International develop technical documents and feasibility study of development of Dzhel project. In 2011, the company prolonged license on studying Shakhpakhty investment project till 2014. The field includes Dzhel field as well.

Gazprom and Uzbekistan are cooperating based on agreement on principles of holding geologic exploration of investment blocks of Ustyurt region from 2006. The agreement envisages providing exclusive rights to Gazprom on further developing new hydrocarbon fields within the product sharing agreement (PSA).

Along with geological exploration works programme, Gazprom International carries out construction and further development of Shakhpakhty field within the PSA, signed in 2004.

The reconstruction and further development of Shakhpakhty is a pilot project of Gazprom International in the Republic of Uzbekistan carried out under a Production Sharing Agreement signed in 2004 for a period of 15 years. In 2004, LLC Operating Company Zarubezhneftegaz - GPD Central Asia was created to execute this project (It is now one of the operational structures within Gazprom International). Its goals and tasks are field surface construction and development, production and distribution of raw material, construction of the corresponding infrastructures, gas purification and storage, performing environmental protection measures, and other activity directly related to such work. Natural gas production from the field was renewed in August 2004; commercial inflow was obtained from 10 wells.

In 2006, the operating company completed reconstruction of the Shakhpakhty booster compressor station and set up preliminary gas treatment; a modern base camp was also built at the field. The gas produced at Shakhpakhty is delivered to the Karakalpaksky compressor station and then through the Central Asia-Centre gas pipeline to consumers.

As part of the license for developing four productive formations, work on the extraction of raw materials and capital renovation work in the wells has been carried out since 2004. In 2010 the operator received a license for developing three additional underlying productive formations.

In May 2009, Gazprom International opened a natural gas deposit on the Dzhel field, located within the boundaries of the Shakhpakhtin investment block on the Ustyurt plateau. An industrial inflow of natural gas was obtained when testing exploratory well No. 1 to a depth of 3,049 metres within the 2,387-2,396 metre range. According to preliminary data, flow rate amounted to around 350,000 cubic metres per day in a 12 mm carbine.

Exploratory drilling is currently being carried out at the field, and a fourth exploratory well was drilled in 2011. This work enables the deposit's reserves to be defined more accurately, and also allows an assessment to be made of its industrial outlook.

A new deposit is located 15 km south-west of the Shakhpakhti deposit, which will enable future expenditure on the technological processes for preparing and supplying gas to the market to be reduced.