Accumulated production of Khauzak-Shady field (Bukhara Region of the Republic of Uzbekistan) has reached 10 billion cubic meters of gas.
Development of Khauzak-Shady is a part of Kandym-Khauzak-Shady-Kungrad project which is being implemented by LUKOIL together with the National Holding Company Uzbekneftegaz under the PSA which was signed in June 2004 for 35 years and took effect in November 2004. Three years after commercial production of gas began on the field and in another year Khauzak-Shady reached the design production rate of 3 billion cubic meters per year.
At the same time active exploration activities continued, including acquisition of 3D seismic covering 500 square kilometers and drilling of 2 exploration wells which resulted in the increase of C1 and C2 category reserves by more than 21 billion cubic meters of gas. Resource base increase allowed adoption of a new field development plan in December 2010 which provides for the growth of the annual production of Khauzak-Shady field to 4 billion cubic meters of gas starting from 2012.
LUKOIL Uzbekistan, a subsidiary of LUKOIL Overseas, is the operating company of the project.
Lukoil press release — 20 June 2011