The only oil-production enterprise in southern Tajikistan under threat of closure

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The only oil-production enterprise in southern Tajikistan under the threat of closure because of lack of finance for clearing oil fields, Muhammadjon Nematov, the head of the oil-producing enterprise in the Baljuvon district of the Khatlon province, told Asia-Plus in an interview.  

According to him, the enterprise was established in 1973 and between 800 to 1,200 people had worked for the enterprise.  To-date, the oil fields have been fouled that has led to decrease in oil production.  “If the enterprise had earlier produced 650-700 tons of oil per day, now it produces only 1.5 tons of oil per day,” Nematov said. 

Three years ago, the number of employees working with the oil-producing enterprise reportedly fell to 53.  Currently, only 33 people work with the enterprise.

“Investors from India, Pakistan, Iran, China, the United States, the United Kingdom and several Arab countries have visited the area.  According to their estimates, 170-200 million U.S. dollars are needed for rehabilitation and maintenance of one drilling rig, while we have eight such drilling rigs.  They said that this is unprofitable for them and refused cooperation,” the Baljuvon oil-producing enterprise director said.

He considers that complicated mountain relief, lack of roads and infrastructure and some other factors have influenced their decision. 

The Kulob mini oil refinery has reportedly purchased their oil to produce diesel oil, gasoline and fuel oil.  

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