Lukoil has rejected developing one of the deposits in Uzbekistan

​Lukoil has returned the license for geological exploration at the Kungrad block in the north-west of Uzbekistan due to the non-profitability of the discovered hydrocarbons reserves, the representative of the department of Fuel and Energy sector of the Cabinet of Ministers of Uzbekistan said.

The company fully executed geological exploration at the Kungrad block. Commercial reserves are not discovered there, the contract territory was returned to Uzbekistan.

In June 2004 Lukoil, the Government of Uzbekistan and Uzbekneftegas signed a PSA for 35 years on the development of the Kandym gas deposits, Khauzak and Shady sites in the south-west of Uzbekistan and geological exploration at the Kungrad block. In 2009 the company discovered the Shege deposit at the Kungrad block, the reserves of which are not mentioned, and planned to put it into operation by 2016 and expand the resource base of this site.

Currently Lukoil realizes 3 projects in Uzbekistan – Kandym-Khauzak-Shady, develops the deposits of the South-Western Gissar, holds geological exploration of the Uzbek site of the Aral Sea in the structure of the international consortium. In the framework of the first two projects Lukoil plans to extract up to 18 bln cubic m of gas by 2020, increase the investment up to $8 bln.