The statement said that LUKOIL Overseas made discovery within the exploration project Aral in Uzbekistan. The drills of the first exploration well with the depth of 3,300 meters at Western Aral helped to receive commercial gas inflow with total deposit of about 600,000 cubic meters a day.

The company said it achieved important success during implementation of the project Kandym-Khauzak-Shady-Kungrad. It said that the company fulfilled annual plant by 1.5 times at Khauzak-Shady field. The company produced over 1 billion cubic meters of gas more compared to planned volume. Simultaneously, LUKOIL Overseas ensured the growth of recoverable reserves at the volume of about 2 billion cubic meters of gas.

The Kandym-Khauzak-Shady product-sharing agreement was signed on 16 June 2004. In November 2007, the Khauzak gas field was introduced into operation.

Proved geological natural reserves at contract territory is 329 billion cubic meters. At the end of February, the company increased its gas reserves at Khauzak-Shady area by 20 billion cubic meters.

All extracted natural gas will be exported through Gazprom pipelines. Preliminary export volume will make up 3 billion cubic meters a year. Currently, Lukoil invested US$800 million to the project with the cost of US$3.1 billion.

It is planned that Russian company will invest US$5.5 billion into Uzbekistan by 2015 and increase gas extraction to 16 billion cubic meters a year.

The PSA for the Uzbekistan part of Aral Sea between Republic of Uzbekistan and Consortium of Investors was signed on 30 August 2006.

Investors for PSA and founders of Aral Sea Operating Company are Uzbekneftegaz, Petronas Carigali SDN BHD (Malaysia), LUKOIL Overseas Aral Ltd. (Russia), KNOC Aral Ltd. (Korea) and CNPC International Ltd. (China).

In line with the PSA, Uzbekistan will possess 50% of product, while consortium participants will receive 10% each in the initial stage of the project.