TSX-listed Condor Energies secures contract to boost natural gas production and cut emissions in Uzbekistan

By bne IntelliNews February 4, 2024

TSX-listed Condor Energies has announced a contract with the government of Uzbekistan to enhance production at eight natural gas-condensate fields. The project aims to boost the country's domestic natural gas supply and reduce carbon emissions at the same time.

Under the agreement with Uzbekneftegaz (UNG), the national oil and gas company, Canada's Condor will oversee production improvements and sell the natural gas domestically. The company is to bear all project costs and will earn a share of the net revenue generated.

Don Streu, Condor's president and CEO, expressed enthusiasm about the venture and the opportunity to increase Uzbekistan’s gas production and reserves using advanced technologies and practices.

“We are very excited about this investment opportunity and are honored to be selected as UNG’s first Western strategic operating partner to contribute to increasing Uzbekistan’s natural gas production rates and recoverable reserves. Our plan will introduce proven technologies, mature field optimization practices, reduce carbon emissions, and take advantage of Condor’s long-standing regional presence and experience,” Streu said.

The targeted fields, similar in geology to those in the Western Canadian Sedimentary Basin, are experiencing declining production rates and low recovery. Condor plans to address these issues through modern technology and operations, including artificial lift, drilling programmes, and seismic reprocessing.

Operations are expected to begin in early 2024 following environmental and technical assessments. 

The project is also seen as beneficial for local communities through job creation and skills training.

This collaboration marks Condor's expansion in Central Asia, complementing its work in Kazakhstan with a liquefied natural gas (LNG) project and a lithium brine project. The company's activities in Uzbekistan are part of a broader strategy for growth in the region, leveraging its expertise and technology in gas revitalization and exploration.

Streu added: “The Uzbekistan government will benefit from increased taxes and royalties derived from the increased gas production and additional foreign investment.”

Uzbekistan, with significant natural gas and gold resources, has seen a surge in international investment following economic reforms. Despite a focus on renewable energy, natural gas remains a key transitional fuel, with the government aiming to maximize production from existing fields.

Condor Energies continues to focus on energy transition in Central Asia and Turkey, with projects aimed at enhancing reserves, production, and cash flow while minimizing environmental impact. 

Related Articles

Tashkent Stock Exchange reports decline in 1Q24 trading volume

Tashkent Stock Exchange (TSE) has released its results for 1Q24, revealing a significant decrease in trading volume y/y. The results report, compiled by the TSE and Avesta Investment Group, ... more

Uzbekistan's basalt industry attracts $498mn investment

Uzbekistan’s basalt industry has attracted an investment of $498mn. The focus on basalt stone mining and fibre production, particularly in the Forish district of Jizzakh region, has become a ... more

Coca-Cola invests $165mn in two new Uzbekistan factories

Coca-Cola Ichimligi Uzbekistan has announced plans to invest $165mn in constructing two new factories, Spot reported on April 8. The first factory, to be situated in ... more

Dismiss