Uzbekistan ends gas development deal with Gazprom at Shokhpakhta field

The agreement, initially signed in 2004 for a 15-year term, was extended in 2018 for an additional 5 years. However, after 20 years of cooperation, the contract was not renewed, and the Russian company has exited the project.

Thus, the collaboration on the Shokhpakhta field, located in the Ustyurt region, concluded on July 31, 2024.

The first gas-condensate field in the Shokhpakhta area was discovered in 1964, and gas production began in the 1970s. Over time, due to declining reserves, operations were halted.

In 2004, production resumed with the aid of new technologies, and a joint venture was established with Gazprom Zarubezhneftegaz. A product sharing agreement (PSA) was signed for 15 years, leading to the launch of 19 wells.

In 2018, Gazprom and Uzbekneftegaz signed an agreement to extend the gas production for 5 more years, until 2024. During the St. Petersburg International Economic Forum, Vitaly Markelov, Deputy Chairman of the Management Committee of Gazprom, and Alisher Sultanov, then Chairman of Uzbekneftegaz, signed a second supplementary agreement for further development of the field.

According to the document, gas extraction was to continue under the same commercial terms using the existing infrastructure until 2024.

As reported by Neftegaz.ru, in recent years, the Shokhpakhta field produced around 350 million cubic meters of gas annually.

For reference, in 2018, Uzbekistan signed a 25-year product sharing agreement with Gazprom for the nearby Zhel gas field, located just 15 kilometers from Shokhpakhta.