Azerbaijan, Uzbekistan intend to establish JV
Tashkent, Uzbekistan, Dec. 28
By Demir Azizov- Trend:
The State Oil Company of the Azerbaijan Republic (SOCAR) and Uzbekneftegaz National Holding Company plan to establish a joint venture to introduce the energy-saving technologies in the Uzbek oil and gas industry in the first six months of 2016, a representative of the Neftegazinvest company (part of Uzbekneftegaz) told Trend Dec. 28.
According to the source, SOCAR and Uzbekneftegaz signed a memorandum of intent to establish a joint venture on a parity basis to introduce the latest developments and technologies in the field of energy conservation and alternative energy sources in the Uzbek oil and gas industry in November 2015.
"While signing the memorandum, the Uzbek side took into account that SOCAR has necessary expertise, equipment and technologies for this project implementation," the representative said.
The representative said that according to the memorandum, the Azerbaijani company will initially conduct the comprehensive energy audit of Uzbekneftegaz's enterprises. Proceeding from the results of the energy audit, the sides will determine the parameters of the project during the negotiation process.
"We hope that the founding documents of the joint venture implementation will be signed in summer 2016," the source said.
It was previously reported that Uzbekneftegaz plans to transfer up to $500 million to finance the energy-saving technologies by 2030. The energy saving potential is estimated at 2.5 billion cubic meters of natural gas annually while implementing these technologies.
Uzbekneftegaz's capacity allows producing 70 billion cubic meters of natural gas and eight million tons of liquid hydrocarbons annually.