Gazprom ends operations at Uzbek gas field after contract expiry

On July 31, 2024, Russian energy giant Gazprom ended its operations at the Shohpakhta gas field in Uzbekistan following the expiration of a production sharing agreement. The liquidation of the operating company is currently underway in accordance with approved procedures and applicable legislation, according to"Neftegaz.ru", citing Gazprom Zarubezhneftegaz.

The Shohpakhta field is located in the Kungrad district of the Republic of Karakalpakstan, in the southeastern part of the Ustyurt Plateau. Discovered in 1962, the field’s gas reserves are primarily found in Jurassic and Triassic geological layers. Its initial reserves were estimated at 39.9 billion cubic meters, while the current recoverable reserves are approximately 8 billion cubic meters. Industrial production at Shohpakhta began in 1974, with an annual output of 2.5 billion cubic meters of natural gas. The field contains seven gas-bearing layers, and the project was focused on efficiently developing the remaining reserves.

In 2004, Gazprom Zarubezhneftegaz (now Gazprom EP International Limited) and Uzbekneftegaz signed an agreement for the reconstruction and development of the Shohpakhta field. The agreement was initially set for 15 years and later extended until 2024 during the St. Petersburg International Economic Forum in May 2018, with no changes to its terms.

In June 2009, a new field named Jel was discovered within the Shohpakhta block. Its proven reserves include 6.4 billion cubic meters of gas and 76,000 tons of gas condensate. An agreement for its development was signed in October 2018 between Gazprom EP International Limited and the Ministry of Energy of Uzbekistan. Commissioning of the Jel field is planned for 2026.

Gazprom continues to operate in Uzbekistan through its subsidiary, Gas Project Development Central Asia, which is involved in the Uzbekistan Independence investment block. This project focuses on the re-exploration and development of the “25 Years of Independence” (M-25) field.

It is also worth noting that Gazprom has signed long-term gas transit agreements through Kazakhstan for deliveries to Uzbekistan and Kyrgyzstan until 2040. These agreements enable the export of up to 12 billion cubic meters of gas.