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Korean Daewoo company stops oil and gas exploration in Uzbekistan

Business Materials 20 September 2012 17:04
Korea's Daewoo International Corp. has stopped geological exploration in the oil and gas Ustyurt region in Uzbekistan, Uzbekneftegaz told Trend on Tuesday.
Korean Daewoo company stops oil and gas exploration in Uzbekistan

Uzbekistan, Tashkent, Sept. 19 / Trend D. Azizov /

Korea's Daewoo International Corp. has stopped geological exploration in the oil and gas Ustyurt region in Uzbekistan, Uzbekneftegaz told Trend on Tuesday.

According to the source, the company took a decision on commercial inexpediency of further operations on the licensed areas after the seismic survey and exploratory drilling.

The prospective areas in other regions were offered to the Korean company to conduct exploration operations.

Daewoo is examining these proposals, the source said.

It was previously reported that in February 2008 Daewoo and Uzbekneftegaz signed an agreement to explore the Koskudyk and Ashibulak investment blocks in Ustyurt for five years.

Investments in exploration in this period must hit $40 million, including at least $27.6 million for the first three years.

The agreement came into force in December 2008.

Uzbekistan ranks third on natural gas extraction among CIS countries. It is among the ten largest gas-producing countries in the world.

Over 60 billion cubic meters of natural gas, some of which is exported, are annually extracted in the Republic.

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