INTERFAX
October 30

The government of Uzbekistan has decided to restructure national oil and gas company Uzbekneftegaz to improve its investment appeal and attract a foreign investor through privatization, a government source told Interfax.

Uzbekistan's privatization program includes the sale of 49% of Uzbekneftegaz and shares in its subsidiaries to a foreign investor.

Four of the eight Uzbekneftegaz subsidiaries will retain their status: oil products company Uznefteprodukt, gas transport firm Uztransgaz, machine building enterprise Uzneftegazmash, and Uzgeoburneftegazdobycha.

Uzgeoburneftegazdobycha will be formed from Uzburneftegaz, the country's only drilling company, and Uzgeoneftegazdobycha, the company in charge of hydrocarbon exploration and production.

Uzneftepererabotka, which owns all of the oil refineries in Uzbekistan, and Uzneftegazsnabzhenie, a supply and sales company, will be disbanded. The oil refineries will become part of Uznefteprodukt, with the exception of the Shurtan Gas Chemical Complex, which will be transferred to Uzbeneftegaz.

Uzneftegazstroi, a construction company for the oil and gas industry, will become part of Uzbekneftegaz. The restructuring should be completed in 30 days.

France's BNP Paribas helped plan the restructuring process and the International Bank for Reconstruction and Development is assisting. Uzbekneftegaz produces 56 billion cubic meters of natural gas and 8 million tonnes of liquid hydrocarbons.

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