PRESS OF UZBEKISTAN
June 27, 2016
RAISING DOMESTIC DEMAND
The oil and gas industry of Uzbekistan intends to save nearly $275 million through import substitution and localization projects this year.
To this end, the sector has scheduled to produce goods at more than 770.6 billion soums (currency rates of CB RU from 27.06.2016, 1$= 2938.71 soums) under 38 projects of localization program. It is anticipated that the growth rates will increase more than fourfold against the last year.
In the framework of these tasks, Uzbekneftegaz is planning to develop the production of spare parts for drilling oilfield equipment, oil grade pipes, shut-off and control valves, instrumentation, welding materials, chemicals and more.
Last year, the total volume of localized products under 29 projects in the industry reached 184.3 million soums, thereby saving more than $76.3 million of foreign currency.
Along with the abovementioned projects, measures on optimization of imports envisage the development of intra and inter-sectoral cooperation links for the needs of the oil and gas sector. Therefore, Uzbekneftegaz takes part in the International Industrial Fair and Cooperation Exchange. Last year alone, Uzbekneftegaz purchased various goods and production services at 974 billion soums from domestic producers at IIFCE, which is 1.4 times more YOY.
By the end of 2019, Uzbekistan plans to implement a total of 38 oil and gas projects worth about $20.6 billion. Investments in the development and modernization of the sector will increase by 8% to $2.7 billion in 2016 against 2015, including the completion of nine projects worth $624.1 million on modernization of refining capacities, additional equipping of gas condensate fields, and introduction of energy-saving equipment.
The Uzbekneftegaz NHC capacities allow for annual production of 70 billion cubic meters of natural gas and 8 million tons of liquid hydrocarbons.
(Source: «Uzbekistan Today» newspaper)