The Fund for Reconstruction and Development of Uzbekistan has granted $53.5 million to Uzbekneftegaz for provision of necessary facilities at Alan deposit

 

 

The Fund for the Reconstruction and Development of Uzbekistan (FRR) has granted $53.5 million to Uzbekneftegaz for the provision of the necessary facilities at the Alan deposit. The credit is granted for 10 years, with inclusion of beneficial 3-year period under 2.25% per annum. The credit funds will be allocated for the  purchase of imported technological equipment. The project presupposes the construction of a booster station with annual capacity of 1.5 billion cubic m and drilling of wells with the use of high technologies. The project will be realized within 3 years.

 

At the beginning of March, Uzbekneftegaz announced the tender for the construction and engineering of the booster station with maximum price of $77.7 million; the winner will be chosen in Q2 2012.

 

The financing of the project costing $178.3 million will be performed by the FRR credit, the own funds of Uzbekneftegaz  at a rate of $89.2 million and the credits of Uzbek banks at a rate of $35.5 million.

 

The Alan deposit has been developed since the middle of 1970-s. The volume of its reserves is not brought into the public domain.

 

In 2007-2009, Uzbekneftegaz realized analogical projects at two other large deposits,the Zevardy and Pamuk, costing $170 million. Under the projects, they built 2 booster stations with total output of 7 billion cubic m. Uzbekneftegaz is able to provide annual production of 70 billion cubic m of gas and 8 million tons of liquid hydrocarbons.

 

FRR was founded in May 2006 for the financing and co-financing of the most important investment projects included to the state investment program. Its current authorized capital is $10 billion. The founder is the state represented by the Ministry of Finances.

 

Source: http://www.oilcapital.ru/industry/149178.html

 

Translated by Nadezhda Poltoratskaya

 

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