Russian PetroAlliance will start the seismic survey works in the Uzbek waters of the Aral Sea in the early September this year.

According to the schedule, the seismic operations will be conducted for three months: September-November. The workload for this period makes up about 800 running kilometers. The marine seismic crew is to start at work in the mid-October.

In August 2006, the Government of Uzbekistan and an international consortium including UzbekNefteGaz (Uzbek Oil and Gas) Holding, Russian Lukoil Overseas, Malaysian Petronas, Korean KNOC and Chinese CNPC signed a product sharing agreement on a project for the period of 35 years. According to the terms of the agreement, at the initial stage the members of the consortium will receive 10% of the product each; Uzbekistan’s minimum share is 50%.

The Aral Sea Operating Company was set up to implement the project. Pursuant to the Presidential Resolution, the taxation regime, including the customs duties will be paid according to the conditions specified in the PSA. The PSA will stay in force throughout its validity period.

Within the frame of the project, in May this year, PetroAlliance won the bids for the seismic survey in the water part, the transit zone and on land of the Uzbek part of the Aral Sea. According to a source in UzbekNefteGaz Holding, seismic operations totaling over 2,300 running km will be carried out within the next three years. The total budget of this phase of the project is estimated at some US$100 million.