Interfax
May 5

Lukoil Overseas Holding Ltd. plans to sign a production-sharing agreement on the Kandym-Hauzak-Shady gas project in Uzbekistan.

Lukoil Overseas, which handles foreign projects by Russian oil major Lukoil, said in a press release that Azat Shamsuarov, the company's senior vice chairman, made the announcement during the European Bank for Reconstruction and Development's annual business forum, which took place in Uzbekistan's capital Tashkent.

The Kandym-Hauzak-Shady group of fields, which is in the Bukhara- Khiva district, contains a probable 300 billion cu m of gas. A direct investment of $760 million and overall investments of $1 billion would be involved. Production would peak at 8.8 billion cu m annually, the press release said.

The press release went on to say that Lukoil Overseas was invited to the forum as one of the EBRD's partners in the CIS. The two signed a six-year syndicated benchmark financing loan agreement for $80 million a month ago.

The loan is intended to refinance earlier credits; to develop the major Sibirskoye oil field in the north of Russia's Perm region; to improve efforts to recycle associated gas; and for automation and IT upgrades.

The first tranche of the benchmark finance facility is expected this month. Lukoil Overseas will draw the rest if and when needed during the remainder of this year.

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