Uzbekistan, Tashkent, May 22 / Trend D.Azizov /
Malaysia's Petroliam Nasional Bhd (Petronas) may withdraw from the two production sharing agreements (PSAs) in Uzbekistan, a source in the Uzbekistan government circles told Trend on Wednesday
The source said Petronas had informed the government of its intention to withdraw from the PSA for the exploration and development of the Baysun investment block in the Surkhandarya region as well as from the PSA to develop the fields at Urga, Kuanish and the Akchalak group at Ustyurt.
The source did not disclose the reasons behind the Malaysian company's intentions.
As previously reported, Petronas and Uzbekneftegaz signed a PSA with respect to the fields of Urga, Kuanish and the Akchalak group in the Ustyurt region of Uzbekistan in 2009. The PSA's was concluded for a term of 25 years until 2034, while the investment in the project was to reach $539.74 million. The Malaysian company has created a subsidiary, Petronas Carigali (Urga) Operating Company LLC, for work in the licensed areas.
Earlier, Uzbekistan had planned to give the fields Urga, Kuanish and the Akchalak group for development to the Russian company Gazprom. In 2006, the Russian company received a licence for geological exploration of seven investment blocks in Ustyurt. However, the PSA with Gazprom has not been signed.
Gazprom then claimed that the reserves in the Urga, Kuanish fields and deposits of the Akchalak group are not of commercial interest.
The PSA for the Baisun investment unit was signed in June 2010 when the volume of investments under PSA was projected at $660 million. The project provided for the construction of a gas processing plant based on the Gadjak deposit.
In 2010, the Uzbek government allowed Petronas to attract co-investors in PSA for Baysun and create a consortium with them. In 2011, Petronas and the Delta Oil Company of Saudi Arabia signed an agreement to establish a consortium for the PSA with regards to the Baisun investment block.
The operating company Petronas Carigali (Baisun) Operating Company LLC was created to implement the project under the PSA.
As reported, in May 2011, Petronas withdrew from the international consortium for the exploration and development of the Uzbek part of the Aral Sea in the framework of the PSA.
In April of this year, Petronas withdrew from the project to conduct exploration work on the Surkhan investment block and eliminated the project's operator, Petronas Carigali (Surkhanski) Operating Company Ltd.