Canadian company in plan to enhance Uzbek gas
Canadian energy transition company Condor Energies said May 23 it had signed a heads of agreement (HoA) with the Uzbekistan government establishing the framework for final negotiations that would see it assume operatorship of eight Uzbek gas-condensate fields and two exploration blocks.
The HoA, signed with Uzbek’s Ministry of Energy, Ministry of Mining Industry and Geology and the national hydrocarbon energy company JSC Uzbekneftegaz (UNG), has the objective of increasing production rates and recoverable reserves.
If definitive agreements are executed, Condor will implement a comprehensive field refurbishment, including additional infill drilling and deployment of an emissions-intensity reduction plan. Produced gas will be processed under long-term agreements with fixed tariffs and sold domestically under long-term contracts with the state gas marketing company.
“The company’s plan will introduce proven technologies and operating practices and take advantage of Condor’s regional experience,” Condor CEO Don Streu said. “This investment project will also allow UNG to benefit by deploying its capital and the new technologies introduced by Condor to UNG’s larger projects.”
The Uzbekistan government is expected to benefit from increased taxes and royalties on higher production, while local communities will benefit from increased employment and skills training. The 1,070 km2 of exploration acreage, Streu said, is prospective and future exploration could lead to the development of satellite fields which could add additional production.