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Korean DAEWOO will work on carbohydrate exploration in Uzbekistan in 2011

Oil&Gas Materials 19 October 2010 12:12 (UTC +04:00)

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

Subsidiary LLC Daewoo Energy Central Asia will work on exploratory drillings of gas at the Koskudyk and Ashibulak investment blocks in Ustyurt region of Uzbekistan, a source in the National Holding Company (NHC) Uzbekneftegaz reported.

Daewoo is now beginning the selection of the company, which will implement the exploration drilling program.

Under the agreement signed between Uzbekneftegaz and DAEWOO International, the Korean company has committed itself to undertake exploration at Koskudyk and Ashibulak investment blocks investing $ 40 million during 5 years, including 27.6 million during the first 3 years.

In the case of default of established works minimum during the first three years from the date of issuance of the license, DAEWOO International will be required to pay Uzbekneftegaz an amount equal to the value of the outstanding amount of work with the right of contract cancellation by the Uzbek side of the agreement.

Ustyurt oil and gas region is one of the largest in Uzbekistan and the least studied. Promising area of land is 105,100 square kilometers. Prospective Gas Resources are estimated at 1,685 trillion cubic meters, liquid hydrocarbons - in 1, 720 billion tons. In recent years, about 30 oil and gas, including such large as Karazhanbas, North Buzachi, Kalampas are open.

To date, except DAEWOO International, exploration works in the Ustyurt region are carried out by a number of Korean companies and Russian Gazprom. Thus, Korea National Oil Corporation (KNOC) as a part of the international consortium is exploring Samsko-Kosbulak, Aralomor, Romitan, Karakul, Karadzhida-Gumhanin investment blocks worth $ 208.5 million, while KOGAS is exploring Uzunkui-Tuarkyr investment block worth $ 11 million. Gazprom carries out its exploration program worth $ 400 million

Uzbekneftegaz is a monopoly operator of oil and gas industry of Uzbekistan. It was established in 1998 and comprises six joint stock companies.

Uzbekistan occupies the second place among CIS countries after Russia's natural gas production. Every year about 60 billion cubic meters of gas are produced in the country.

In January-June 2010, Uzbekneftegaz reduced the production of natural gas by 3.8 percent - to 30.548 billion cubic meters.

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