Petronas ventures in Uzbekistan

STATE-OWNED Petroliam Nasional Bhd (Petronas) has signed three key agreements in Tashkent, Uzbekistan, boosting its presence and strengthening its business portfolio there.
Petronas, through wholly-owned Petronas Carigali Overseas Sdn Bhd (PCOSB), signed a deal on activities and main principles for the Baisun Block production-sharing agreement (PSA) and an exploration agreement for the Surkhanski Block with the Uzbekistan government in Tashkent yesterday.
Both blocks are located adjacent to each other in the Surkhandarya region, south of the country.
Petronas also signed a memorandum of cooperation (MOC) for petrochemical projects with the Uzbek national oil company Uzbekneftegaz National Holding Co (UNG).
Petronas was represented by its president and chief executive officer Tan Sri Mohd Hassan Marican, while the Uzbek government and UNG were represented by Deputy Prime Minister Ergash Shaismatov and chairman Ahmedov Nurmuhammad Ahmedovich, respectively.
The agreement on activities and main principles for the Baisun Block PSA outlines the main principles and provisions for the PSA.
Under the PSA, which PCOSB expects to enter into next year, the firm will hold a 100 per cent equity stake and will be the operator for the block.
Currently, it is already undertaking exploration work in the block, measuring 3,150 sq km, under a joint-study agreement signed with UNG in 2005.
The exploration agreement for the Surkhanski Block grants PCOSB the rights to carry out exploration work in the block, measuring 7,200 sq km, and will subsequently pave the way for a PSA upon discovery of hydrocarbons.
The agreements for the two blocks will enhance Petronas' presence in the upstream sector of Uzbekistan.
PCOSB is already actively involved in the Aral Sea PSA, in which it has 20 per cent equity.
Other partners in the venture, which is currently in exploration stage, are UNG, CNPC International Ltd, Korea National Oil Corp and Lukoil Overseas Holding Ltd.
Meanwhile, the MOC for petrochemical projects allows Petronas and UNG to undertake joint studies and paves the way for the two parties to cooperate in the development of downstream petrochemical projects in Uzbekistan.
UNG currently operates ethylene and polyethylene manufacturing plants at the Shurtan Gas Chemical Complex in the Qashqadaryo province.-www.btimes.com.my