Uzbekistan moves deeper in search for gas

Authorities in Uzbekistan are increasingly optimistic of arresting the continued decline in domestic natural gas production after exploring the hydrocarbon potential of deep reservoirs at the large and promising Ustyurt Plateau.

The plateau, once partially covered by the Aral Sea, spans parts of Uzbekistan as well as neighbouring Kazakhstan and Turkmenistan, whose sections of the hydrocarbon province are already home to operating gas fields.

Three deep appraisal wells, drilled to depths of between 5000 metres and 6500 metres, have been completed since the start of 2024 in the eastern part of Ustyurt. A fourth well, aiming to reach 7500 metres, is planned to spud in October.

Speaking earlier this week, Uzbekistan President Shavkat Mirziyoyev announced what he described as “a first major gas discovery” following the completion of a 6500 metre deep well at Ustyurt.

Mirziyoyev did not name the field operator nor the name of the deposit. However, his announcement comes after a technical research paper from state run oil and gas producer Uzbekneftegaz, published in August, revealed that appraisal well 1P on the West Kuyi Surgul field in the eastern part of Ustyurt had reached a depth of 6500 metres, becoming the deepest probe ever drilled in Uzbekistan.

The well penetrated several potential gas bearing layers, according to Uzbekneftegaz. Five layers were chosen to be tested at depths of about 5300 metres. They flowed at a combined rate of more than 41,000 cubic metres per day of gas.

The drilling at West Kuyi Surgul was carried out by Uzbekistan’s largest drilling contractor, Eriell. The company has a long-term contract to assist Uzbekneftegaz with re-working depleted deposits and identifying new gas greenfields as part of efforts to reverse declining domestic gas output.

Uzbekistan has the largest population among Central Asia's former Soviet Union countries, which, along with economic growth, has boosted domestic demand for gas.

According to Uzbekneftegaz, two deep holes — one at the Sarizhol block and another on the Kuyi Surgul field — have also been drilled to a depth of about 5500 metres prior to appraisal well 1P on West Kuyi Surgul.

The company said in the August research paper that while it believes the eastern part of the Ustyurt Plateau contains commercially attractive gas resources at such depths, the three appraisal wells have also confirmed the presence of potential hydrocarbons at depths of between 3100 metres and 4500 metres.

Two separate holes that Eriell previously spudded at the Kuyi Surgul field and the neighbouring Kuyi Sharkiy Berdak deposit reached formations at the same depth range. They were tested to flow at significantly higher rates of about 1.3 million and 1 million cubic metres per day of gas, Uzbekneftegaz said.

Meanwhile, another state-backed operator, Yangi Kon, has completed preparations to spud an even deeper appraisal well in the Ustyurt area. It plans to start drilling in October, aiming to reach a depth of 7500 metres, the company told Upstream.

“The confirmation of large gas reserves [at this depth at Ustyurt] will increase the country's investment appeal for new projects and attract large foreign companies,” a Yangi Kon spokesperson said.

Established in 2022, Yangi Kon has contracted global oilfield services provider SLB to support the drilling assignment, the spokesperson added.

In a social network post in June, SLB chief executive director Olivier Le Peuch said he flew to Uzbekistan for meetings hosted by Uzbekneftegaz, Yangi Kon and Yangi Kon’s founding shareholder, Fund for Reconstruction and Development of Uzbekistan, to “discuss opportunities for collaboration, partnership, and value creation”.

Upstream has contacted Eriell and Uzbekneftegaz for comment.