Currently, LUKOIL Uzbekistan develops Khauzak-Shady field in Bukhara region, which was revealed in 1960s, but development of the field was launched after LUKOIL entered in Uzbekistan. Implementation of the project “Kandym-Khauzak-Shady-Kungrad” was started in June 2014 in cooperation with Uzbekneftegaz national holding company after LUKOIL and Uzbekneftegaz signed a product sharing agreement with the term of 35 years.

In 2007, the company started to produce commercial gas. Design level of gas production, 3 billion cubic meters per year, was achieved in November 2008. It is planned to increase level of continuous production up to 4 billion cubic meters per year in 2012. In November 2011 first start-up complex was put into operation in West part of Shady block.

Construction of landfill for disposal of drilling waste and plating of four million seedlings haloxylon, which prevent desertification, serve as serious condition for ecologic balance in the contract area.

Results of supplementary exploration of contract area and development of adjusted digital model of Khauzak-Shady field allowed to increase natural gas production and this year it is planned to produce 3.7 billion cubic meters of gas a year.

In November 2011, first start-up complex was put into operation in West part of Shady block. The supplementary exploration is underway at northern part of Shady block and it is planned to commission the field in 2014, which will help to increase natural gas production. Currently, construction of booster station is underway at Khauzak field and it will be launched in 2014. It will help to increase gas production by 20% a year.

Development of Kandym Group of fields occupies special place in the project. The group has six gas condensate fields. Currently, the company works on designing production complex, which will include over 120 wells, gas processing plant with the capacity of 8 billion cubic meters of gas a year, export gas pipeline more than 70 km long, railway track 56 km long, external motor roads 120 km long, water supply facilities, including pipelines 90 km long, external power supply facilities (high voltage line 220kV, substation 220/110/35 kV); gas turbine power plant with capacity exceeding 80 MW, shift camp for 1380 persons, central support base, stock tanks and product loading terminal, treating facilities, booster compressor stations. It is planned to commission the first line of the plan in 2016.

The “Early gas” project was separated to separate implementation scheme, which envisage construction of northern part of Shady block along with Kuvachi-Alat, which is part of Kandym Group of Fields. Gas produced from these fields will be directed to Mubarek Gas Processing Plant from 2014.

In 2007, LUKOIL Overseas became partner of the production sharing agreement on Southern-Western Gissar and Utsyurt region with Uzbekneftegaz. In 2012, the volume of gas production reached the planned level (1.1 billion cubic meters a year). The volume of investments into this product will make up US$1.2 billion and the volume of gas production will reach 4.2 billion cubic meters of gas a year.

The company conducted huge work within the project “Great Gissar”. Large works are conducted around Adamtash, Gumbulak and Djarkuduk-Yangi Kyzilcha fields. In the first stage, the company had to use explosives. Currently, over 200 units of absolutely new heavy equipment are used here.

It is planned to construct 132 km of new motor roads and reconstruct 30 km of existing roads. New eight meter roads will be used by large trucks, which can transport up to 100 tonnes of cargo. This will be required to construct gas condensate fields.

The company said that human resources are main wealth of LUKOIL. In 2004, when LUKOIL Uzbekistan Operating Company started its operation, it employed 24 people, of which 14 were foreigners. Currently, the company has over 1,300 employees, and share of local staff makes up over 85%.