Uzbekistan, Tashkent, April 23 / Trend D. Azizov /
Malaysian Petronas Carigali Overseas Sdn. Bhd. (Petronas) and the National Holding Company (NHC) Uzbekneftegaz have reached an agreement to withdraw from the Production Sharing Agreement (PSA) in the Urga field to develop gas condensate fields in the Ustyurt region of Uzbekistan, a source in government circles of the republic told Trend on Monday.
This decision was made due to the fact that Petronas considers further development of the field unprofitable. Currently, the decision to withdraw the Urga field from the PSAs was agreed between the parties, and a draft government decree on the matter prepared, the source said.
He said the decree which legally confirms the change of the resource base of the investor, may be signed in April - May 2012.
Withdrawal from the project in the Urga field will not mean the termination of the PSA with Petronas on Ustyurt. The Malaysian company will continue to work in the fields of the Kuanysh and Akchalak group in the Ustyurt region which are included in the PSA.
As previously reported, Petronas and Uzbekneftegaz signed a PSA with respect of Urga, Kuanysh and Akchalak fields group in the Ustyurt region of Uzbekistan in 2009. The term of the PSA is 25 years; the planned investment should amount to $ 539.74 million. According to forecasts, up to 700 million cubic meters of gas annually should be produced after reaching its designed capacity.
To carry out operations on the licensed sites, the Malaysian company established an operator, Petronas Carigali (Urga) Operating Comp.
Earlier, Uzbekistan had planned to transfer the fields of the Urga, and Kuanysh and Akchalak group for the development to the Russian Gazprom. In 2006, the Russian company received a licence for the geological study of seven investment blocks in Ustyurt. However, the PSA with Gazprom has not been signed.