Uzbek president gives 'OK' to Petronas to create consortium
Uzbekistan, Tashkent, July 6 / corr Trend D.Azizov /
Uzbek President Islam Kerimov issued a decree on seismic surveys at the Baysunsk Investment Bloc in the Surkhandarinsk region based on a production sharing agreement with the Malaysian Petronas Carigali Overseas.
The decree authorizes Petronas to attract investors and to sign a consortium agreement within six months of the agreement's enactment. The agreement was signed in June 2010. The date of enactment has yet to be specified.
Petronas has already concluded 2D and 3D field seismic surveys, and testing and analysis at the Gadjak Field amounting to $80 million. Subsequently, the Uzbek State Reserves Commission at the State Geology and Mineral Resources Committee approved the amount of the field's industrial reserves.
Petronas has founded and registered the Petronas Carigali Operating Company in Uzbekistan to implement the project. The company has already started preparations to drill an appraisal well at Gadjak together with a co-investor.
Petronas will began to develop a preliminary feasibility study based on its testing and analysis.
The agreement terms will be coordinated between the sides after the feasibility study's approval.
Petronas will also create a special marketing company in Uzbekistan to organize the necessary activities under the project and to sell the extracted product.
The Petronas Carigali Operating Company will make an obligatory insurance payments, and operate its activities from local Uzbek bank accounts.