Malaysia's Petronas withdraws from two projects in Uzbekistan

Oil&Gas Materials 7 May 2014 17:22 (UTC +04:00)

Tashkent, Uzbekistan, May 7

By Demir Azizov- Trend:

Malaysia's Petroliam Nasional Bhd (Petronas) withdrew from two production sharing agreements (PSAs) on the Baisun investment block and Ustyurt in Uzbekistan, a source in the Uzbek government circles told Trend on May 6.

Petronas liquidated two companies, namely, Petronas Carigali (Baisun) Operating Company and Petronas Carigali (Urga) Operating Company, which worked on these projects, and closed the office in Uzbekistan, according to the statement.

Earlier it was reported that in mid-2013 Malaysian company notified Uzbekistan about its decision to withdraw from the PSA on exploration and development of the Baisun investment block in Surkhandarya region and the PSA on developing Urga, Kuanysh and Akchalak group of the Ustyurt region.

The reasons for withdrawal were not given. The Uzbek side has not commented on them either.

As previously reported, Petronas and Uzbekneftegaz signed a PSA on the fields of Urga, Kuanish and the Akchalak group in the Ustyurt region of Uzbekistan in 2009. The PSA was concluded for a term of 25 years until 2034, while the investment in the project was to reach $539.74 million.

The PSA on the Baisun investment block was signed in June 2010 when the volume of investments under PSA was projected at $660 million. The project envisaged 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 on Baisun 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 on the Baisun investment block.
As reported, in May 2011, Petronas withdrew from the international consortium for the exploration and development of the Uzbek part of the Aral Sea as part of the PSA.

In April 2011, 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.

Translated by NH
Edited by CN