Integrating Central Asia into the World Economy:

1

• Integrating Central Asia into the World Economy
• The Role of Energy and Transport Ifrastructure
  Washington, DC
  October 22 and 23,
  2007
• Oil and Gas Development in Uzbekistan
• Options and Prospects
• Akhmat Arslanov

TECHNOLOGY TRANSFER AGENCY, UZBEKISTAN
2
Development of Oil Gas Industry in Uzbekistan

• Exploration of oil fields in Uzbekistan started
  in 1885
• Natural gas field found first in Uzbekistan in
  1953
• Transcontinental pipelines built when Gazli gas
  field found and extortion started in 1962
• Following development of Oil Gas industry is
  due to the increase in extortion of hydrocarbons
  in Uzbekistan.

3
Gas and Oil resources in Uzbekistan

• Up to day 203 hydro carbon fields found
• Gas and Gas Condensate fields -104
• Oil-Gas and Oil-Condensate Fields - 99
• Exploited - 48
• Explored - 34
• 8 fields include all main gas resources, 2 of
  them yet to be exploited
• 4 fields include all main oil resources, all of
  them are in exploitation
• Resources will allow to keep current extortion
  level
• Gas for 30 years
• Oil for 21 years

4
Gas and Oil fields in Uzbekistan
5
Gas Production in Uzbekistan
6
Oil Production in Uzbekistan
7
Main Indicators of Uzbekistan Oil Gas
Industry in 2006

• Gas production - 55,6 mln cubic meters.
• Oil and Condensate Production - 5,4 mln tons
• Sulfur production - 166,3 thousand tons.
• NGL production - 225,9 thousand tons
• Polyethylene production- 125 thousand tons.

8
Primary energy consumption in Uzbekistan in 2006
9
Internal Energy Consumption
10
Most Energy Consuming Industries
11
Gas Oil Production Portion in GPD in Uzbekistan
12
Power Intensity of GDP
KWT/hour
KJ
India
Iran
USA
Korea
Russia
Ukraine
Turkey
Pakistan
Canada
Romania
Kazakhstan
Uzbekistan
World Bank Data
13
Gas Refinery

• Gas refinery
• - Mubarek Gas Processing Plant more than
  29 bln cubic meters
• - Shurtaneftegas - 12 bln cubic meters
• - Shurtan Gas Chemical Complex -4,5 bln
  cubic meters.
• Refinery products
• - Dehydrated and purified gas
• - Sulfur
• - Condensate
• - NGL
• - Polyethylene.

14
Gas Transportation System
Total extent of 13 thousand km carrying capacity
55 bln cubic meters
15
Gas Exports

• Gas export in 2006 -11,8 bln cubic meters
• (current price - 100 per thousand cubic meters)
• Gazprom - 9 bln cubic meters
• Kazakhstan - 1,45 bln cubic meters
• Kyrgyzstan - 0,7 bln cubic meters
• Tadjikistan - 0,65 bln cubic meters .
• Gas export planned for 2007 - 14,3 bln cubic
  meters
• Russia - 13 bln cubic meters (including
  KazMunaiGas SWAP operation - 3,5 bln cubic meters
  )
• Kyrgyzstan - 0,7 bln cubic meters
• Tadjikistan - 0,65 bln cubic meters .

16
Oil and Condensate Production

• Oil and condensate produced by 3 Plants
• - Altiarik Refinery, Lubricants oriented
  production
• 3,2 mln tones
• - Ferghana Refinery Fuels oriented production
• 5,5 mln tones
• - Bukhara Refinery Fuels oriented production
• 2,5 mln tones.

17
Investment climate

• Favorable Investment Climate built for Oil Gas
  industry, including preferences and privilege,
  further conditions improvement planned
• Realization of 78 projects included into
  Uzbekistan Investment Program for 2007 attracting
  1 billion of foreign investments.

18
Investment Climate

• Duty for use of mineral resources decreased in
  January 2007
• Oil production - from 35 to 20
• Gas condensate - from 32 to 20
• Natural gas from - 58 to 30.
• Excise-duty decreased in January 2007
• Gasoline -from 45 to 28
• Diesel - from 40 to 25
• Kerosene - from 20 to 8.

19
Investment Effectiveness and Dynamics at NHC
Uzbekneftegaz
20
CDM prospects in Uzbekistan (Oil Gas)

• CDM National Body founded at Ministry of
  Economics of Uzbekistan in December 2006
• Number of PINs related to gas flaring at oil
  fields and reduction of gas loses during
  transportation were developed and registered
• There is big potential in decreasing energy
  consumption within oil and gas production and
  transportation
• PINs for 5 more projects are at preparation stage
  today.

21
Gas flaring in Uzbekistan
Satellite photo (World Bank)
22
Uzbekistan Gas Flaring Estimated From DMSP Data
23
Oil and Gas Development in Uzbekistan Options
and Prospects

• THANK YOU FOR YOUR
• ATTENTION

TECHNOLOGY TRANSFER AGENCY, UZBEKISTAN