The Management Committee has taken into consideration the information on technical and economic assessment of investment blocks in the Ustyurt Region of the Republic of Uzbekistan and approved staged Program of geological exploration for 2006-2011 in the region.

Reference:

Uzbekistan’s natural gas total resources comprise more than 6.25 tcm including 1.62 tcm of commercial categories. At present in the Republic about 60 bcm are produced annually of which 5 bcm are exported to Kazakhstan, Kyrgyzstan and Tajikistan. The Uzbek gas supplies to Russia were started in May, 2003. The volume of gas purchasing amounted to more than 8 bcm in 2005. It is planned to purchase 9 bcm in 2006.

On December 17, 2002 Gazprom and National Holding Company “Uzbekneftegaz” have signed the Agreement on strategic cooperation in the gas industry. According to documents, realization of joint projects to produce natural gas in Uzbekistan on PSA terms is one of the basic aspects of cooperation between the sides.

Cooperation based on PSA terms to restore gas production in the Shakhpakhty field is the pilot project in gas production. The production sharing agreement on the project has come into force on July 30, 2004. This project provides opportunity for the larger project implementation based on PSA terms to explore and produce gas in Uzbekistan’s Ustyurt Region.

In order to develop cooperation the agreements were signed on January 25, 2006:

The Agreement between Gazprom and the Republic of Uzbekistan on basic principals and conditions of the Agreement to share produce from the Urga, Kuanysh and Akchalak group fields in the Ustyurt Region of the Republic of Uzbekistan;

The Agreement between Gazprom and National Holding Company “Uzbekneftegaz” on basic principles to explore resources of investment blocks in the Ustyurt Region of the Republic of Uzbekistan.

To implement the Agreements the joint Russian-Uzbek Action Plan was approved on March, 2006.

In the framework of the Plan implementation Gazprom has worked out Technical and Economic Assessment of investment blocks in the Ustyurt Region as well as Staged Exploration Program.