CAPITAL: TASHKENT
MONETARY UNIT: SOUM
REFINING CAPACITY: 222,271 B/CD
OIL PRODUCTION: 152,000 B/D
OIL RESERVES: 594 MILLION BBL
GAS RESERVES: 66.2 TCF

Uzbekistan's cumulative foreign investment since becoming an independent state reached $400 million in 1998, far less than that of its neighbors Kazakhstan and Azerbaijan, a US government source said.

Seventeen US companies, including Unocal and Enron, had ceased operations in Uzbekistan through 2000, largely because of the country's less-open and less market-sensitive fiscal policies. The exodus was continuing even though state Uzbekneftegaz said the country's gas reserves ranked among the world's 15 largest.

Uzbekistan's five main oil regions are, from west to east, Ustyurt, Bukharo-Khivin, Southwest Gissar, Surkhan-Dar'ya, and Fergana.

The country has about 160 known fields, 60% of which are in Bukharo-Khivin and 20% in Fergana. Uzbekneftegaz, with budgets of $182 million in 1999 and $166 million in 2000, accounted for most of the drilling.

During 2000 Uzbekneftegaz invited investors to further develop eight of its producing oil and gas fields requiring total outlays of $242 million. North Shurtan, South Kyzylbairak, and Shakarbulak together produced 646,000 tonnes/year of oil. South Tandyrcha, Gumbulak, and Dzharkuduk produced 2.5 bcm/year of gas and 90,000 tonnes/year of condensate.

Uzbekneftegaz said $25 million in investments would be needed at Umid and South Kemachi fields in order to boost output to 100,000 tonnes/year of oil, 30,000 tonnes/year of condensate, and 2 billion cu m/year of gas. It did not mention current production levels.

Also needed were a $45 million gas compressor station at Gaz and a $20 million plant to utilize flared gas at Kokdumalak field.

Company Chairman Ibrat Zainutdinov said Uzbekistan would sell 49% of its shares to foreign investors and sell stock in its other petroleum companies-Uzneftegazdobycha, Uzneftepererabotka, and Uzburneftegaz.

Processing activity

The Karaoul Bazar refinery 33 miles east of Bukhara started up in 1997, helping Uzbekistan achieve self-sufficiency in petroleum products.

The $400 million, 50,000 b/d refinery processed condensate produced at Kokdumalak field 55 miles away. Kokdumalak field produced 70% of the country's crude and condensate.

Before independence Uzbekistan's two refineries in Fergana (106,000 b/d) and Alty-Arik (66,000 b/d) relied on crude from a pipeline that originated in Omsk, western Siberia, and delivered oil to Uzbekistan by way of Chardzou, Turkmenistan. By 1995, these crude imports were largely eliminated.

The Bukhara refinery has units for atmospheric distillation, naphtha hydrodesulfurization, gas oil hydrodesulfurization, kerosine sweetening, regenerative reforming, sour-water treatment, and sulfur recovery. It also has a gas plant, one control station, and two electricity substations.

In 2000 it produced gasoline for export as well as gasoline, diesel, and kerosine for the domestic market. The Uzbekistan government planned to double the refinery's capacity.

In 1997, Mitsui and Toyo Engineering Corp. undertook a $200 million desulfurization capacity expansion project at the Fergana refinery to permit the production of low-sulfur diesel. Texaco was involved in a joint venture to produce and market Texaco-branded lubricants from the Fergana refinery.

The Alty Arik refinery needed to be mothballed or rebuilt.

Most of the country's gas, which is high in sulfur, is routed through the 2.7 bcfd Mubarek gas processing and treatment plant. ABB Lummus was to have completed construction of the $1 billion Shurtan petrochemical plant by year-end 2000. ..