BMI View: Uzbekistan's crude oil and natural gas production will be marginally lower in 2017 comparedwith the previous year. Oil output is set to decline at a slow but accelerating pace to reach 72,850 b/d by2026. Yet despite BMI's mostly downbeat view of Uzbekistan's oil industry, recent activities from majorssuch as Lukoil underline the importance of Uzbekistan as a major gas producer and exporter in the Caspianregion. Lukoil has secured a USD500mn loan from a consortium of international banks to develop theGissar fields in Uzbekistan's Kashkadarya Region.
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Total gas production will reach 59.22bn cubic metres (bcm) in 2017, marginally lower than in 2016.
In November 2016, Lukoil raised USD500mn in a five-year unsecured loan to finance the developmentof the Gissar gas condensates fields. The first gas fields - Djarkuduk and Yangi Kyzylcha - werecommissioned in December 2011 as a part of the 'Early Gas' stage. In 2017, under the 'Full Development'stage, the company plans to launch the Djarkuduk complex gas treatment unit with capacity of 4.4bcm ofgas per year. It will allow reaching the relevant target production level.