LUKOIL will invest US$300 million in 2007 to develop Kandym-Khauzak-Shady gas deposits, Andrei Podbolotov, LUKOIL Overseas Uzbekistan Ltd. general director, said in Tashkent.

Last year, the company invested US$100 million in the project. Experts estimate overall investment in the project at over US$2.0 billion.

In June 2006, LUKOIL Overseas stepped up development drilling operations at Khauzak. The company also started work on construction of initial gas treatment plant and gas collection centres, shift team camp, motor road power transmission line.

Developed on product sharing agreement terms, the deposit is to be put to commercial use later this year and to attain a maximum annual yield of 10 billion cubic metres of gas.