LUKoil president praises Uzbekistan

UPI May 24 LUKoil's chief has praised Uzbekistan's cooperation with his company. Company President Vagit Alekperov wrote May 17 in the Uzbek newspaper Pravda Vostoka that the former Soviet republic had increased the extraction of natural gas by more than 40 percent since independence. He said despite those strides, the country still aims to attract more than $6 billion in investment, including $2.4 billion in the oil and gas sector. "LUKoil is to play an important role in carrying out this task," he wrote. "A production sharing agreement between LUKoil and Uzbekistan came into force in 2005 and will run for 35 years. LUKoil investments over this period will exceed $1 billion, he said. He noted that his was not the only firm to see such potential in Uzbekistan. "For example, an agreement on setting up a consortium of investors -- comprised of Uzbekneftegas, LUKoil Oversees Holding, Malaysia's Petronas Carigali, Korea National Oil Corporation (South Korea) and China's CNPC -- was signed in Tashkent on Sept. 8, 2005. Each member has an equal share in the consortium. "The consortium has entered into negotiations with the Republic of Uzbekistan on preparations for a production sharing agreement to start geological prospecting and developing of oil and gas fields on the Uzbek part of the Aral Sea. When the PSA is signed, the parties will immediately start prospecting work. LUKoil believes that the Qandim-Dengizkol-Qongirot project the largest investment project in the country as of today will start paying back very soon." Alekperov also praised the country for its political stability and the work ethic of its citizens, saying that both attributes made for a favorable investment climate that was further boosted by the developed production and transport infrastructures in place.