Petronas inks 2 joint effort deals with Uzbekistan

The Edge Daily October 3 Petroliam Nasional Bhd (Petronas) is stepping up its presence in Uzbekistan in a proposed tie-up with the country's national oil company, Uzbekneftegaz National Holding Company (UNG). In a statement on Oct 3, Petronas said its subsidiaries Petronas Carigali Sdn Bhd and Petronas Carigali Overseas Sdn Bhd had signed a memorandum of cooperation (MOC) and a joint study agreement (JSA) with UNG. Under the MOC, Petronas Carigali and UNG will explore the opportunities for joint cooperation in the oil and gas sector both in Malaysia and Uzbekistan. The JSA defines the scope of a technical study to be jointly undertaken by Petronas Carigali Overseas and UNG in the Baisun Investment Block in Uzbekistan. The MOC and JSA were signed in Kuala Lumpur, with Petronas represented by its president and chief executive officer Tan Sri Datuk Seri Mohd Hassan Marican while UNG was represented by its chairman Abdusalom Azizov. The signing ceremony took place in the presence of Uzbek President Islam Karimov and Uzbek Deputy Prime Minister Abdulla Aripov. Petronas said the joint study, which is expected to complete in 18 months, would pave the way for the execution of a Production Sharing Agreement for the onshore block. It said the agreements signalled its commitment to establish a long-term presence in the Uzbek oil and gas sector. "More importantly, they signify the move towards greater, mutually beneficial cooperation between the two national oil companies," Petronas added. Last month, Petronas Carigali Overseas became a party to a consortium formed to undertake exploration works in the Uzbek territorial waters of the Aral Sea. Other members of the consortium are UNG, CNPC International Ltd, Korea National Oil Corporation and Lukoil Overseas Holding Ltd.