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CNPC in Uzbekistan

CNPC has been involved in oil and gas operations in Uzbekistan since 2006 and now has oil and gas assets and equity in the country, while also providing oilfield services.
  • Oil and Gas Operations
  • Oilfield Services, Engineering and Construction
  • Major Events

In June 2006, CNPC signed an oil and gas exploration agreement with Uzbekneftegaz, which came into effect on August 30.

This project includes five onshore exploration blocks, covering a total area of 34,000 square kilometers. These blocks are located in three large petroliferous basins: Ustyurt, Amu Darya and Fergana. 7,000 kilometers of 2D seismic data and 1,320 square kilometers of 3D seismic data will be acquired and 27 various exploration wells will be drilled in the following five years.

In 2008, CNPC and Uzbekneftegaz signed a letter of intent to jointly boost the output of mature oilfields in Fergana Basin.

Aral Sea project

Located in Ustyurt Basin, the Aral Sea project has an exploration area of 12,000 square kilometers. In August 2006, a consortium comprising of CNPC, Uzbekistan's Uzbekneftegaz, Russia's Lukoil, Malaysia's Petronas and South Korea's KNOC signed a production sharing contract with the government of the Republic of Uzbekistan on the exploration and development of oil and gas deposits in the Aral Sea.

In 2012, high-yield gas flows were obtained from the well WAEX-1 and well WA-2A drilled by Xibu Drilling Engineering Company as part of the Aral Sea project. This was an important exploration discovery in the Aral Sea Basin.

Mingbulak Oilfield Project

Mingbulak Oilfield is situated on the northern edge of Fergana Basin. Discovered in 1992, the oilfield contains more than 30 million tons of recoverable reserves buried at a depth of more than 5,000 meters underground. In October 2008, CNPC and Uzbekneftegaz signed a cooperation agreement to create a JV to develop Mingbulak Oilfield.

In 2009, we completed ultra-deep well Dzhida-3 and Dzhida-4, and now the wells have entered the production testing stage in Kara-Dzhida region. The designed depth of well Dzhida-4 is 6,350 meters, and the actual drilling depth has reached 6,596 meters, a record depth in CNPC’s overseas drilling and formation pressure. It also created a record drilling depth in Uzbekistan.

In 2016, the Mingbulak project moved ahead steadily.

CNPC provides geophysical prospecting, well drilling and logging services in Uzbekistan. In 2008, we made smooth progress in 3D prospecting in the Amu-Darya Basin of Uzbekistan. In 2010, well Nangong-1 drilled by Western Drilling Engineering Company, a wholly owned subsidiary of CNPC, in Uzbekistan was completed at a depth of 5,717 meters, 21 days ahead of schedule. This well registered a record in terms of drilling depth, as well as the one-pass success of electrical logging, casing, and cementing, along a 311mm wellbore using a 70 Rig.

In addition, CNPC is a major petroleum equipment supplier to Uzbekistan. In 2003, CNPC exported 10 ZJ50DB electric drill rigs to Uzbekistan for the first time and set up a drill rig service center and a spare parts warehouse in this country. In 2012, we renewed well logging and mud logging contract with Silk Road Company.

Construction of Central Asia-China Gas Pipeline

The Central Asia-China Gas Pipeline starts at Turkmen-Uzbek border city Gedaim and runs through central Uzbekistan and southern Kazakhstan before reaching Horgos in China's Xinjiang Uygur Autonomous region. Currently the Gas Pipeline has three lines in parallel, each running for 1,830 kilometers. Construction of Line A/B commenced in July 2008. With pipe diameter of 1,067mm, Line A became operational in December 2009, and Line B became operational in October, 2010. A delivery capacity of 30 billion cubic meters per annum was reached by the end of 2011.

Construction of Line C was started in September 2012. With a designed capacity of 25 billion cubic meters per annum, Line C’s pipe diameter is 1,219mm, 152mm larger than Line A/B. The overall welding work of the pipeline was completed at the end of 2013. On May 31, 2014, at the initial station of the Central Asia-China Gas Pipeline in Uzbekistan, the gas valve was turned on to boost natural gas from Turkmenistan to Line C, indicating the new transnational pipeline jointly built by CNPC and its Central Asian counterparts has become operational.

Upon completion of all supporting facilities of Line C by the end of 2015, the overall delivery capacity of the Central Asia-China Gas Pipeline will hit 55 billion cubic meters per annum. This equals to approximately 20% of China’s annual natural gas consumption, and would substitute 73 million tons of standard coal, cutting carbon dioxide and sulfur dioxide emissions by 78 million tons and 1.21 million tons every year, respectively.

In September 2013, China signed inter-governmental agreements with Uzbekistan, Tajikistan, and Kyrghyzstan respectively on Line D project. On March 4, 2014, CNPC's subsidiary Trans-Asia Gas Pipeline Company Limited signed an agreement with Tajiktransgaz on jointly establishing a natural gas pipeline company to manage the construction of Line D. On August 19, CNPC and Uzbekneftegaz signed an agreement on Line D of the Central Asia-China Gas Pipeline in Uzbekistan. Under the agreement, CNPC and Uzbekneftegaz will establish a JV company to construct and operate the Uzbekistan section of Line D. On September 13, construction of the Tajikistan section of Line D started. Totaling 1,000km with 840km outside China, Line D has a designed annual deliverability of 30 billion cubic meters, and is routed via Uzbekistan, Tajikistan and Kyrgyzstan to China. Upon the operation of Line D, the Central Asia-China Gas Pipeline will have an annual deliverability of 85 billion cubic meters, the largest gas transmission system in Central Asia.

By the end of 2014, the Central Asia-China Gas Pipeline had operated safely and steadily for five years, and transported 104.7 billion cubic meters of gas. Moreover, the pipeline is the winner of China's Golden Award for Construction Excellence.

In 2016, Line C of the Central Asia-China Gas Pipeline was fed with gas sources in Uzbekistan, with the annual transmission capacity of Line A, B and C totaling 51 billion cubic meters.

Drilling in High-pressure Salt Water Layers

In Uzbekistan, CNPC tackled one of the world's most difficult drilling problems. The drilling challenge in the country's high-pressure salt water layers of Kokedumalak oilfield had troubled Uzbekistan's petroleum community for 16 years. More than 100 wells had been discarded because of encountering high-pressure salt water layers. In 2006, this problem was able to be solved by our technologies and experience, and we successfully completed six wells in the high-pressure salt water layers. One example was well No. 352, a horizontal well with the longest horizontal interval in the oilfield. After the directional thrust through the high-pressure salt water layer, we completed this well, 4,114 meters in designed depth and 870 meters in horizontal section length.

Aug. 19 2014 CNPC and Uzbekneftegaz signed an agreement on Line D of the Central Asia-China Gas Pipeline in Uzbekistan, and an MOU for building a natural gas chemical plant at Mubarek.

Sept. 9, 2013 CNPC and the Uzbek Government signed an MOU for feasibility study on oil and gas exploration and development in two blocks in Uzbekistan and an agreement on the principles of establishing a JV company for oil and gas exploration and development in the Karakul block. Under the agreement, CNPC and Uzbekneftegaz will establish a JV to develop the three gas fields and other potential oil and gas resources in the Karakul block.

Sept. 21, 2011 CNPC and Uzbekneftegaz signed an agreement on the construction and operation of Line C of the Central Asia-China Gas Pipeline.

Jun. 9, 2010 CNPC signed a framework agreement on purchase and sale of natural gas with Uzbekneftegaz, whereby Uzbekistan will supply 10 billion cubic meters of natural gas to China annually.

Dec. 14, 2009 Central Asia-China Gas Pipeline became operational.

Jun. 27, 2009 CNPC and NHC Uzbekneftegaz sign agreements on oil and gas cooperation. These include an agreement on reinforcing oil and gas cooperation, a supplementary agreement on cooperation principles for the joint exploration and development of Mingbulak Oilfield, and an agreement on principles for the establishment of a joint venture.

Oct. 15, 2008 An agreement is signed with Uzbekneftegaz on the joint venture development of the Mingbulak Oilfield, which is located at the northern edge of the Fergana Basin, Uzbekistan, and contains more than 30 million tons of recoverable reserves.

Jun. 30, 2008 Construction of the Uzbek section of the Central Asia-China Gas Pipeline began in Bukhara, a city in southern Uzbekistan. ATG, a natural gas pipeline joint venture between CNPC and Uzbekneftegaz, will be in charge of the construction and operation of the Central Asia-China Gas Pipeline on Uzbek territory.

Aug. 2006 The Aral Sea Oil and Gas Development Consortium of Investors, which composed of CNPC, Uzbekneftegaz, Lukoil, Petronas and Korea National Oil Corporation, signed a production sharing agreement with the Government of the Republic of Uzbekistan in Tashkent, for the activities involving exploration and development projects in the Uzbek section of the Aral Sea.

Jun. 2006 CNPC signed an oil and gas exploration agreement with Uzbekneftegaz.

Jun. 2004 CNPC and Uzbekneftegaz signed an agreement on cooperation in oil and gas sector.