OREANDA-NEWS. LUKOIL Uzbekistan Operating Company, a subsidiary of LUKOIL Overseas, has completed the construction a temporary storage and waste management facility for drilling cuttings on Khauzak and Shady blocks (Bukhara Region, Southwestern Uzbekistan) within the framework of implementation of the Kandym-Khauzak-Shady-Kungrad PSA.

At present commissioning work is being completed on the site. The facility is the first of its kind in Uzbekistan. It will handle 12,000 tons of drilling cuttings per year.  Capacity of the base disposal unit is 10 tons per hour.

The PSA for the Kandym-Khauzak-Shady-Kungrad project was signed on June 16, 2004 in Tashkent and went into effect on November 24, 2004.  The project is being implemented by a consortium of investors, which includes LUKOIL Overseas (90%) and Uzbekneftegaz, the national holding company (10%).