Lukoil Overseas has produced first gas from Dzharkuduk-Yangi Kyzylcha which is the largest field of the block, under the PSA for development of gas reserves of South West Gissar (Kashkadarya Region, Republic of Uzbekistan).
Before the start of gas production on South West Gissar, only oil was produced on South Kyzylbayrak and Koshkuduk fields (according to the preliminary data 90,000 tons were produced in 2011). The projected production on Dzharkuduk at the initial stage will be 1.1 billion cubic meters of natural gas per year.
Next step of field development will be a startup of the gas processing facility and putting large Adamtash and Gumbulak fields in production. Plans for this stage include drilling of more than 40 producing wells, building of external power supply lines, gas processing and gathering system, commercial gas pipeline, condensate pipeline, shift camp, field base and engineering infrastructure facilities. Associated investment will be $1.2 billion and volume of gas production will reach 16 million cubic meters per day (projected level is 5.8 bcm per year).
The PSA for the project was signed for a term of 36 years and came into effect in April 2007. LUKOIL joined the project in March 2008. The contract area is operated by LUKOIL Uzbekistan which employs about 700 people of which 90% are Uzbekistan nationals. As for 01.01.2011 proved reserves of the block are about 1417 billion cubic foots of gas and 23 million barrels of oil and condensate. 2D and 3D seismic survey was completed on the block in 2010 which resulted in reserves increase, identification of several prospects and discovery of two new fields, South East Kyzylbayrak and Shamoltegmas.