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Petrovietnam to invest $61 mln in exploration of Uzbekistan’s Ustyurt region

Uzbekistan Materials 17 June 2012 18:30 (UTC +04:00)
Petrovietnam Exploration & Production (PVEP) will invest in exploration work on the Molabaur investment block of Ustyurt region of Uzbekistan $61.58 million, a source in the government circles of the republic told Trend on Thursday.
Petrovietnam to invest $61 mln in exploration of Uzbekistan’s Ustyurt region

Uzbekistan, Tashkent, June 17 / Trend D. Azizov /

Petrovietnam Exploration & Production (PVEP) will invest in exploration work on the Molabaur investment block of Ustyurt region of Uzbekistan $61.58 million, a source in the government circles of the republic told Trend on Thursday.

The source said that at the moment the Uzbekneftegaz National Holding Company (NHC) and PVEP signed an agreement to conduct exploration on this investment block for five years. Agreement was approved by President of Uzbekistan Islam Karimov.

In accordance with the decision of the President, the Vietnamese company under the project is provided with a number of tax and customs privileges.

This is the second project of the Vietnamese company to conduct exploration for oil and gas in Uzbekistan.

In 2010, Uzbekneftegaz and PVEP signed an agreement to conduct exploration work on the Kossor investment block of Ustyurt region.

According to the document the Vietnamese company should invest $29.4 million in exploration work on the Kossor investment block for five years and spend no less than $13 million on the minimum exploration programme during the first three years.

PVER established the Kossor Operating Company to implement the project in Uzbekistan.

According to the holding, the operator has carried out seismic work, carried out processing and interpretation of the data, following which several potential structures were identified.

The Vietnamese company plans this year to begin exploratory drilling on the Kossor block.

At present, about 44 investment blocks were allotted for foreign investors to conduct exploratory operations in Uzbekistan. The licenses on 21 blocks were given to foreign companies.

Exploration and development activities carried out in Ustyurt are carried out by Russian Gazprom and Lukoil, Korean Daewoo International and KOGAS, China's CNPC and Malaysia's Petronas. The total investment of foreign companies in exploration in this region is about $700 million.

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