The product sharing agreement was signed in 2007 and Lukoil entered to the project in March 2012. The block area, located in Guzar and Dehkanabad districts of Kashkadarya region of Uzbekistan, makes up 2,500 square meters.

In December 2011, the company realized the first stage of the project and started to extract gas from largest field of the block – Jarkuduk-Yangi Kyzylcha. The contract area also has several fields, including large gas condensate fields Adamtash and Gumbuluk and oil fields Southern Kyzylbayrak and Koshkuduk.

Lukoil said that favourable tax regime in gas sector of Uzbekistan helps to achieve high profitability. Net income of Lukoil for 1 barrel of oil equivalent makes up US$11.3 in Western Sibir and US$15.1 in Uzbekistan.

The company said proved reserves of the block (C1 and C2) makes up 100 million tonnes of standard coal. Since joining of Lukoil to the project and due to intensive exploration works, the reserves grew by 12 million tonnes of standard coal.

During this period, the company conducted 2D (1,300 km) and 3D (555 square km) seismic works and opened Southern-Eastern Kyzylbayrak and Shamoltegmas fields, prepared to drilling Navruz structure and conducts drilling at Shurdaryo structure and three perspective objects.

This year, Lukoil plans to complete drilling at these structures, continue seismic works and interpretation of seismic data, calculation of reserves and preparation of new objects for exploration drilling.

It is planned that the reserves at Gissar will increase by 20 million tonnes of standard coal. In 2011, the company spent US$15 million to explore Gissar and plans to invest about US$25 million in 2012.

In 2014, Lukoil hopes to extract 3.5 billion cubic meters of gas year. Total capital investment into the project will be US$800 million.