Russian Bank, Jizzakh Petroleum agreed to increase oil production in Uzbekistan

Oil&Gas Materials 16 December 2020 12:05 (UTC +04:00)
Russian Bank, Jizzakh Petroleum agreed to increase oil production in Uzbekistan

BAKU, Azerbaijan, Dec. 16

By Klavdiya Romakayeva - Trend:

Russian Bank for Development and Foreign Economic Affairs (VEB.RF), EXIAR JSC (VEB.RF Group), and Jizzakh Petroleum agreed to cooperate in the framework of investment projects to increase oil production from fields with hard-to-recover reserves and develop infrastructure for the sale of oil products in Uzbekistan, Trend reports referring the press service of VEB.RF.

VEB.RF Group and Russian partners of the Development Institute have concluded a number of agreements aimed at implementing projects in the oil and gas sector of Uzbekistan. The documents were signed in the presence of VEB.RF Chairman Igor Shuvalov and Minister of Energy of Uzbekistan Alisher Sultanov.

VEB.RF, Gazprombank JSC and Uzbekneftegaz JSC agreed to cooperate in financing the second stage of the program to increase hydrocarbon production in Uzbekistan.

According to the information, Gazprombank and VEB.RF is considering the possibility of advanced financing of the project. The funds, in particular, are planned to be used to pay for the work of Russian contractors and suppliers. The parties are discussing the conditions for providing a bridge loan of up to $100 million, while Uzbekneftegaz will attract at least 50 percent of the loan funds in Russian rubles.

In early November 2020, VEB.RF and Uzbekneftegaz signed a loan agreement for up to 40 million euros to finance the supply of Russian high-tech products, work and provide services for the construction and modernization of the company's production facilities in order to increase the volume of natural gas production.

Also, a cooperation agreement was signed between Uztransgaz and VEB.RF on financing the supply of Russian products. The agreement is connected with the purchase of Russian-made pipe products, including for the construction of the Yangiyor-Akhangaran gas pipeline, as well as the renewal and re-equipment of the company with special Russian-made equipment.

“In total, projects are being discussed that provide for the export deliveries of Russian high-tech products and services worth more than $700 million with the participation of VEB.RF in the oil and gas sector of Uzbekistan,” Shuvalov noted.

Currently, VEB.RF focuses on several projects on the territory of Uzbekistan in various industries - modernization of Almalyk MMC (mining and metallurgical complex), support of an agrological complex project based on Russian technologies, materials, and equipment in the Jizzakh region, a pilot deal of a new format of cooperation between Russia and Belarus for the supply of mining trucks for Almalyk MMC.

In addition, negotiations are underway with the city administration to participate in the project for the improvement of Tashkent.


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