Tashkent, Uzbekistan (UzDaily.com) -- Uzbek Energy Minister Jurabek Mirzamakhmudov explained how the Production Sharing Agreement (PSA) works using the example of Lukoil.

Many call this deal 90/10. That is, there is an erroneous opinion that 90% of the gas from this field goes to Lukoil, and 10% to Uzbekistan.

As the minister explained, in fact, everything is quite different. Taking into account the share of Uzbekneftegaz (a state-owned enterprise), which is among the investors, 55% of the total income goes to Uzbekistan, and 45% from Lukoil.

For example, let’s say there is a profit of US$100 million.

Initially, the proceeds will be divided 50/50: US$50 million to Uzbekistan, US$50 million to investors. The investors then split that US$50 million between the two.

There are two investors: one Lukoil - its share is 90%, which means US$45 million (90% of US$50 million). The second - Uzbekneftegaz - its share is 10%, that is, 5 million dollars (10 percent of 50 million dollars).

Thus, if we take the example of US$100 million, then under this deal, Uzbekistan will get US$55 million and Lukoil US$45 million, the Minister said.