Uzbekistan upstream summary Report

Country Report 12 November 2020

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Report summary

Uzbekistan is a well-established gas province and ranks among the top 20 global gas producers. Liquids output is relatively minor. Economic and regulatory reforms since 2017 have had a positive impact, revitalising IOC interest in Uzbek upstream opportunities. At present, state-owned Uzbekneftegaz (UNG) dominates the energy sector, with LUKOIL the key IOC investor. It operates two large-scale PSCs that are core sources of current and future gas production: Kandim-Khauzak-Shadi and Southwest Gissar. Uzbekistan's double-landlocked location can pose logistical challenges to the import of equipment and export of production.

Executive summary
Key facts
Location maps
Key companies
- National companies
  - Uzbekneftegaz (UNG)
  - Uztransgaz (UTG)
- IOCs and local operators
  - Development assets
  - Exploration assets
- Service sector and technology licensing
Geology
- Introduction
- Afghan-Tajik basin
- Stratigraphy
  - Surkhandarya sub-basin
  - Southwest Gissar sub-basin
  - Reservoirs
- Amu Darya basin (Bukhara-Khiva Area)
- Stratigraphy
  - Reservoirs
- Hydrocarbon quality
- Fergana basin
- Stratigraphy
  - Reservoirs
- Hydrocarbon quality
- Mangyshlak basin
- Stratigraphy
  - Reservoirs
- North Ustyurt basin
- Stratigraphy
  - Reservoirs
  - East Aral sub-basin
- Syrdarya basin
- Stratigraphy
  - Reservoirs
Exploration
- Licensing
- Overview
- Future licensing activity
  - Exploration tenders and auctions
  - Production Enhancement Contract (PEC) tenders
- Recent licensing activity (2015 onwards)
  - Ad hoc talks
  - 2015-16 tender
- Historical licensing activity (pre-2015)
  - Overview
  - Licensing rounds (1993-2006)
  - Ad hoc talks (2007-12)
- Drilling
  - Drilling activity
- Overview
- Future drilling plans
- Amu Darya basin (Bukhara-Khiva Area)
  - Overview
  - IOC activity
- Fergana basin
  - Overview
  - IOC activity
- Afghan-Tajik basin
  - Overview
  - IOC activity
- North Ustyurt basin
  - Overview
  - IOC activity
- Mangyshlak basin
  - Overview
  - IOC activity
- Syrdarya basin
  - Overview
  - IOC activity
Reserves and resources
- Uzbek classification system
  - Transition to Western reserve standards
- Reserves and resources overview
  - Gas
  - Liquids
- Reserves by basin
- Contingent resources by basin
- Reserves by report
Production
- Liquids
  - Historical production
  - Current and future production
- Gas
  - Historical sales production
  - Current and future sales production
  - Gas markets
Infrastructure
- Introduction
- Key issues
- Oil infrastructure
- Existing liquids pipelines
  - Export
  - Domestic
  - Omsk-Seidi trunk pipeline
- Planned liquids pipelines
  - Jizzakh refinery tie-in (cancelled)
- Road and rail transportation
  - Road infrastructure
  - Rail infrastructure
- Refineries
- Gas infrastructure
- Existing gas pipelines
  - Overview
  - Export routes
- Planned gas pipelines
- Export pipelines to Russia
  - Central Asia-Centre (CAC)
  - Bukhara-Ural
- Export pipelines to China
  - Turkmenistan-China Gas Pipeline
- Export pipelines to Kazakhstan
  - Gazli-Shymkent
  - Bukhara-Tashkent-Bishkek-Almaty
- Export pipelines to Tajikistan
  - Sherabad-Dushanbe (Shurtan-Kelif-Dushanbe)
  - Shurtan-Sherabad
- Gas processing
  - Mubarek GPP
  - Shurtan GPP
- Gas-feed projects
  - Shurtan Gas Chemical Complex (SGCC)
  - Ustyurt Gas Chemical Complex (UGCC)
  - OLTIN YO'L GTL (Uzbekistan GTL)
  - Proposed methanol to olefins (MTO) projects
  - Other potential gas monetisation projects
- Underground gas storage (UGS)
  - Gazli
  - North Sokh
  - Khodjabad
Costs
- Introduction
- Capital costs
  - Capital expenditure by location
- Operating costs
  - Operating expenditure by location
Policy and regulation
- Key legislation
- Recent reforms (2017 onwards)
  - Overview
  - Key recent legislation
  - Planned legislative changes
- Tax Code
  - Previous tax codes
- Other core legislation
  - Law on Concessions
  - Law on Investments and Investment Activities (2019)
- Regulatory body
- Ministry of Energy
- State oil company
- Uzbekneftegaz (UNG)
  - Reorganisation (2019 onwards)
- State participation
Fiscal terms
- Overview
  - Upstream
  - Midstream / downstream
- Current fiscal terms
- 2020 Tax Code
  - Key reforms relevant to the oil and gas sector
- PSCs
  - Tax stability
  - State equity participation
  - Bonuses, rentals and fees
  - Royalty and other production taxes
  - Cost recovery
  - Profit sharing
  - Corporate income tax (CIT)
  - Additional profit taxes
  - Contractor revenue entitlement
  - Product pricing
  - Domestic market obligation (DMO)
  - Fiscal/contractual ring-fences
  - Dividend withholding tax
  - Other taxes
  - Indirect taxes
  - Sample cash flow
- Concessions
  - State equity participation
  - Bonuses, rentals and fees
  - Royalty and other production taxes
  - Corporate income tax (CIT)
  - Excess profits tax (EPT)
  - Contractor revenue entitlement
  - Liquids and natural gas pricing
  - Domestic market obligation (DMO)
  - Fiscal/contractual ring-fences
  - Dividend withholding tax
  - Other taxes
  - Indirect taxes
- Production Enhancement Contracts (PECs)
  - Overview
  - PEC criteria
  - Royalty and other production taxes
  - Contractor revenue entitlement
  - Corporate income tax (CIT)
  - Domestic market obligation (DMO)
  - Fiscal/contractual ring-fences
- Historical background
- Concessions
  - Infrastructure development tax (cancelled)
  - Turnover tax (cancelled)
  - Excess profits tax (EPT, cancelled)