The source said that the President of Uzbekistan Islam Karimov signed a resolution, which approves measures on speeding up project implementation.

The government source said that seismic data showed high perspectives of the block and it was decided to complete exploration programme, which also includes drilling of exploration well, in the first quarter of 2013.

He said that the company will begin drilling the first exploration well at the contour of palaeozoic deposits in the licensed area in early 2012.

Uzbekneftegaz and PVEP signed agreement on conducting exploration works at Kossor Investment Block in Ustyurt region in 2010.

In line with the agreement, PVEP will invest US$29.4 million to exploration of Kossor Investment Block on own risks. At the same time, the minimum investment in the first three years will make up US$13 million. PVEP created Kossor Operating Company to implement the project.

According to the agreement, the sides will sign product sharing agreement if the foreign investor founds commercial deposits of oil and gas.

In 2010, Uzbekneftegaz and PVEP also signed a memorandum on possibilities of holding oil and gas exploration works at Bukhara-Khiva region of Uzbekistan.