Tashkent, Uzbekistan, XX January 2023
- The ERIELL Group of Companies, Uzbekistan’s largest oil and gas drilling and servicing company, has released operating results for 2022 showing progress on drilling and overhaul projects contracted by Uzbekneftegaz, Saneg, Natural Gas Stream and Gazli Gas Storage, as well as an update on its most challenging project in Uzbekistan, the Mustakillikning 25 Yilligi field for the Surhan Gas Chemical Operating Company.
ERIELL reported that much of its activity in the oil and gas sector was in furtherance of the Uzbekistan President’s 2017 decree aimed at increasing the nation’s hydrocarbons production. This included the construction of new wells, the overhaul of existing ones, as well as the creation of technological facilities. The program contributes to a significant expansion of the geography of hydrocarbon supplies, including in what are regarded as strategic areas for Uzbekistan.
After a Covid-induced slowdown in 2021, the Company also reported increased activity in its social and charitable ventures.
Activities by Customer
In 2022, ERIELL Group specialists together with Uzbekneftegaz JSC completed the construction of 30 wells with total penetration of 51,600 m. The ERIELL Group also achieved an average commercial drilling rate of 740 m/t per year. At the Kuyi Surgil and Kuyi Sharqi Berdakh fields located in the Republic of Karakalpakstan, the depth of the wells reaches 4,500 running meters.
Natural gas production growth was achieved at a number of fields, including: "Khodjikazgan" and "Taylak" in the BukhArsk region, "Zevardy", "Dengizkul", "Alan" and "Shurtan" in Kashkadarya region, "Sharqi Berdakh" and "Kuyi Surgil" in the Republic of Karakalpakstan.
The following works on the oil and gas infrastructure were carried out under the 2017 Presidential decree:
Sanoat Energetika Guruhi LLC
- Connection – 33 wells;
- Construction of gas pipelines loops – 45.8km;
- Well improvement – 44 wells;
- Electrochemical protection – 68 wells;
- Construction of overhead lines – 16km;
- Electrochemical protection of gas pipelines-collectors – 35.5km;
- Construction of roads – 29km.
In 2022, ERIELL Group specialists together with FE Sanoat Energetika Guruhi LLC (Saneg) completed the drilling of 65 wells and the construction of 53 wells. Work was carried out on side-tracking in four wells. The total penetration for 2022 was 185,700 m (as of 22.12.2022). In drilling on the site of the old seabed of the Aral Sea, an ultra-deep parametric well, “YUKSALISH-1P” was laid, which reached a depth of 4,500 meters and will be drilled to below the 6,000-meter mark.
Gas production was carried out at fields "Western Aral" (Republic of Karakalpakstan), "Markaziy Avval" (Fergana region), "Chegara" (Bukhara region), as well as "Shimoliy Maimanak", "Kyzylrabot", "Karim", "Rasulkuduk", "Shimolii Kultak", "Karabair" (Kashkadarya region). There are also several new wells in fields located in the Kashkadarya region: "Northern Urtabulak", "Sardob", "Doston", "Garmiston", "Karabair", "Turtsari" and in the Bukhara region - "Chegara".
Contracted by Saneg, the following activities took place:
- Connection – 51 wells;
- Construction of gas pipeline loops – 55.6km;
- Well improvement – 25 wells;
- Construction of gas pipelines-collectors – 122.1km;
- Construction of roads – 5.8km.
Under the contract for the capital construction of fixed assets for Saneg, the following activities took place:
Surhan Gas Chemical Operating Company
- Connection – 18 wells;
- Construction of plumes – 6.7km;
- Landscaping – 3 wells;
- Electrochemical protection – 3 wells.
ERIELL’s largest and most complex project is the Mustakillikning 25 yilligi (M-25) field, located in the Surkhandarya region, and contracted by the Surhan Gas Chemical Operating Company.
ERIELL Group’s results in drilling and the development of wells were high, even by international standards. Over the past year, the Company specialists set several records for daily penetration at the M-25 field - 362 meters, then 425 meters and 616 meters.
Throughout the year, a total of 18,035 meters were drilled and three wells commissioned. At the end of the year, two wells were also completed and tested. In 2023, the M-25 project team will work to increase the number of meters drilled using advanced technologies and the application of international experience in drilling complex gas wells.
Drilling plans for 2022 were 100% fulfilled. On one well, additional testing work is being carried out.
Joint Venture LLC Natural Gas Stream
For the JV ERIELL Group performed the following works:
- Overhaul and wells’ maintenance, preparation for side-tracking, fracturing and development - 28 wells;
- Side-tracking – 6 wells;
- Intensification of the inflow;
- Hydraulic fracturing – 4;
- Gas-dynamic and inflow analysis at gas condensate fields;
As a result of the work carried out, it was possible to increase gas production in 2022 by 44.4m cubic meters.
Works under a contract for the Akchalak group of fields (Republic of Karakalpakstan:
- Connection – 4 wells;
- Construction of gas pipelines loops – 6.1km;
- Well improvement – 4 wells;
- Electrochemical protection – 3 wells.
Gazli Gas Storage
In 2022, the following works were carried out on a project to expand Gazli underground gas storage (UGS) facilities in the Bukhara region, contracted by JV Gazli Gas Storage LLC):
- Major repairs and maintenance works were carried at 53 existing wells including repairs and insulation work, transition to the higher-level production zone, change of downhole equipment, etc;
- 51 new wells were built at UGS facilities, most of which were drilled within 3 to 6 days.
The works enabled the expansion of the Gazli UGS facility by 1.5 billion cubic meters. This achievement is strategically important given that the main task of underground gas storage is to provide gas to the population and enterprises during the season of falling gas production in the autumn-winter period.
ERIELL Group paid a total of 732 billion Som (US$64.5 million) in tax in 2022.
The Group currently employs over 12,000 people and created more than 1,000 new jobs in Uzbekistan during 2022.
ERIELL Group, as a socially responsible company, considers charity an integral part of its activity. In 2022, 15 charitable actions were carried out, during which targeted assistance was provided to more than 500 people from socially vulnerable groups.
The Group of companies regularly provides support to the Specialized Orphanage for Children with Psychophysical Disabilities in the Kibray district of the Tashkent region, the Tashkent Regional Orphanage "Kichkintoy", patronizes the Public Association APLA on a permanent basis, the “Mekhribonlik” Social Assistance Society, the Republican Specialized Scientific and Practical Medical Center for Hematology and other social institutions.
ERIELL is the general sponsor of the project "Cultural heritage of Uzbekistan in the collections of the world." At the VI Congress of the World Society for the Study, Preservation and Popularization of the Cultural Heritage of Uzbekistan, 50 volumes of book-albums of the series "Cultural Heritage of Uzbekistan in the Collections of the World" in three languages, 14 volumes of the series "Architectural epigraphy of Uzbekistan", as well as a number of gift editions and documentaries films. This year, at the forthcoming VII Congress, new 10 volumes will be presented. All published books are distributed free of charge to scientific and educational institutions both in the country and abroad.
ERIELL actively promotes the cultural heritage of Uzbekistan around the world. The project brings together 400 scientists from 40 foreign countries and regularly holds national and international media events, congresses and presentations. The Chairman of the Board of Trustees of the World Society is the head of the ERIELL Group, Bakhtiyor Fazilov, who was awarded the AVICENNIA INTERNATIONAL PRIZE in Paris in 2022 for promoting philosophical and cultural research and cooperation between the countries of the European Union, the Mediterranean and Central Asia. The award was presented by the President of the Medical Academy of France, Mr. Tran Ba Hui, with the participation of the Ambassador of the Republic of Uzbekistan in France, Sardor Rustambaev. The World Society for the Study, Preservation and Popularization of the Cultural Heritage of Uzbekistan installed a bronze bust of Avicenna in the throne room of the Board of Directors of the French Medical Academy.
The Group also promotes sports, being a sponsor of the Ice Hockey Federation in Uzbekistan. The company's team regularly holds sporting events, and some employees participate in various national competitions.