Lukoil Uzbekistan Operating Company said that the project “Building of complex of gas processing plant and construction of Kandym group of fields” is on the initial stage of development of documentation. The development of various variants of documentation is underway.

Lukoil is implementing large-scale oil and gas project “Kandym-Khauzak-Shady-Kungrad” through its operational company Lukoil Uzbekistan Operating Company in line with the product sharing agreement, which was signed between Uzbekistan and consortium of investors – Lukoil and Uzbeknefetegaz – in 2004.

Within the PSA in 2007, the Khauzak gas field was put into operation and gas production was started. Along with construction of Khauzak deposit, the company developed and approved preliminary feasibility study of investment project “Building of complex of gas processing plant and construction of Kandym group of fields” in 2006-2007.

After that, the operator started to select contractor for designing. The tender, which was held in 2009, was announced invalid. In 2010, the company held meetings and talks, in the result of which contract strategy of the project was adopted and agreed with the Cabinet of Ministers and Uzbekneftegaz. The sides also agreed to re-announce tender.

Hyundai Engineering won the tender in 2011 and became contractor on designing of building complex on gas processing plant and construction of Kandym group of fields.

From 1 March 2012, Lukoil Uzbekistan Operating Company created division – Direction on construction of Kandym enterprise. The division currently will employ 67 people and major part of them was recruited.

Director of new division Oleg Vlasov said the employees of the division visit Seoul office of Hyundai Engineering. This is directed to speed up consideration and agreeing project solutions, discuss and adopt decision on technical issues, organization of meetings, etc.

It is planned that the first stage of Kandym gas processing plant will be launched in 2016. To increase profitability and efficiency o the project, the operator undertook obligation to production of gas. The project envisages construction of northern part of Shady with Kuvachi-Alat, which is part of Kandym group of fields. The mined gas will be directed to the Mubarek gas processing plant from 2014.