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11/12/2007
PETRONAS INKS KEY AGREEMENTS WITH UZBEKISTAN
PETRONAS has signed three key agreements in Uzbekistan which would boost its presence and strengthen its business portfolio in the country.
Through wholly-owned subsidiary PETRONAS Carigali Overseas Sdn Bhd (PCOSB), PETRONAS signed the Agreement on Activities and Main Principles for Baisun Block Production Sharing Agreement (PSA) and an Exploration Agreement for the Surkhanski Block with the Government of Uzbekistan. Both blocks are located adjacent to each other in the Surkhandarya region, south of Uzbekistan.
PETRONAS also signed a Memorandum of Cooperation (MOC) for Petrochemical Projects with the Uzbek national oil company Uzbekneftegaz National Holding Company (UNG).
The Agreement on Activities and Main Principles for Baisun Block PSA outlines the main principles and provisions for the PSA. Under the PSA which PCOSB expects to enter into in 2008, PCOSB will hold a 100 per cent equity stake and will be the operator for the block. Currently, PCOSB is already undertaking exploration work in the block, measuring 3,150 square kilometres, 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 square kilometres, 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 this venture which is currently in exploration stage are UNG, CNPC International Ltd, Korea National Oil Corporation and Lukoil Overseas Holding Ltd.
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 operate an ethylene and polyethylene manufacturing plants at the Shurtan Gas Chemical Complex in the Qashqadaryo province of Uzbekistan.
The signing ceremony for the three agreements took place in Tashkent yesterday (10 December). PETRONAS was represented by its President and CEO Tan Sri Dato Sri Mohd Hassan Marican. The Uzbek Government was represented by its Deputy Prime Minister, Mr. Ergash Shaismatov and UNG was represented by its Chairman, Mr. Ahmedov Nurmuhammad Ahmedovich.
Issued by:
Media Relations Department PETRONAS 11 December 2007
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