In late October 2008 LUKOIL arranged a trip for investor community to Uzbekistan.
Uzbekistan is traditionally one of the leading gas producers in the Central Asian region. The country's gas industry dates back more than 50 years and Uzbekistan was the birthplace of the Soviet gas industry.
The Company first came to Uzbekistan in spring 2001, signing an agreement on basic principles and terms of a future production sharing agreement. A representative office was opened in Tashkent in the beginning of 2003. In 2004 the PSA came into force for the Kandym – Khauzak – Shady project between the Republic of Uzbekistan and an investor consortium consisting of LUKOIL Group and the National holding company Uzbekneftegaz.
The trip started with a visit to the Khauzak-Shady area (Kandym – Khauzak – Shady project), where production began in 2007. Kandym – Khauzak – Shady is LUKOIL’s largest international project measured by the Company stake: maximum annual production level in the overall project will be about 12 billion cubic meters. Total project capital expenditures by the consortium are estimated at $2 billion.
After the visit to the Khauzak-Shady area the trip participants had a meeting with Uzbekistan’s Government members and LUKOIL management in Tashkent. They discussed the macroeconomic situation in the country, position and prospects of the Company outside Russia, especially in Uzbekistan.
Beside that, the trip participants got acquainted with Uzbekistan culture and hospitality of its people.