The Moscow, Russia based company said the transaction value was approximately US$580 million. The National Holding Company Uzbekneftegaz is the second signatory to the Production Sharing Agreement or PSA as a state authorized body.
The PSA was signed on 23 January 2007 for a 36-year period effective 23 April 2007.
Lukoil indicated 7 fields in the contract area of the South-Western Gissar - Kashkadarinsky Region including the gas condensate fields Dzharkuduk-Yangi Kyzylcha, Gumbulak, Amanata, Pachkamar and Adamtash, the oil and gas condensate field Southern Kyzylbayrak, and the oil field Koshkuduk. The Southern Kyzylbayrak and Koshkuduk fields produce a small amount of oil and gas condensate.
CIS Gissar Operating, legal entity of the Republic of Uzbekistan, is the operator that carries out work in the contract area, also part of the assets being acquired. The investments for project implementation are estimated at US$700 million with over US$70 million already invested into the project.
Raw materials from South-Western Gissar will be processed by the Shurtan Gas and Chemical Unit and the dry gas produced would be exported through OAO Gazprom transportation systems gas pipe lines of Central Asia - Center and Bukhara - Urals. Oil will be transported to the Bukhara and Fergana refineries from the Shurtan terminal. The joint marketing company, CIS Vostok Marketing Limited will market raw materials and oil and gas products.
The PSA also allows geologic exploration work, including prospect evaluation survey at the Karaumbet and Shumanay investment blocks of the Central Ustyurt - Kara-Kalpak Republic and exploration of the contract territory at the South-Western Gissar. The license is valid for 5 years. Minimum amount of investments into geologic exploration came to approximately US$22 million.