Russia's Lukoil to Invest $5.5 Billion in Uzbekistan by 2015

TASHKENT, Uzbekistan, April 24, 2008 (Dow Jones Newswires)

Russian oil major Lukoil (LKOH.RS) plans to invest $5.5 billion in the gas-rich Central Asian state of Uzbekistan by 2015, company president Vagit Alekperov said Thursday.

Lukoil has already invested $500 million in the former Soviet republic and its total annual gas production here is set to reach 16 billion cubic meters in the medium term, Alekperov said.

"Projects in Uzbekistan are becoming a priority for the development of the company's international activity and the realization of its gas strategy," Alekperov told reporters at a briefing in the capital Tashkent.

Lukoil and the Uzbek government in 2004 formed a consortium to develop the Kandym-Khauzak-Shady gas fields in the southwest of the country under a 35-year deal.

Between 2007 and 2039, cumulative gas production from all fields could reach 300 bcm, he said.

In March, Lukoil acquired seven gas fields in Uzbekistan from Russian energy firm Soyuzneftegas.

Lukoil is also participating in a production sharing agreement with state-owned Uzbekneftgas as well as companies from Malaysia, South Korea and China to develop fields in the Aral Sea.

Uzbekistan produces more than 60 bcm of gas a year, most of which is sold domestically. In 2007, Uzbekistan exported 9 bcm of gas to Russia.

TASHKENT, Uzbekistan, April 24, 2008 (Dow Jones Newswires)


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