The Uzbek parliament’s press office told Interfax that the Senate would debate amendments to the Tax Code, which would oblige foreign partners in new PSAs to pay excise of 25% of customs duty on gas, on 28 August. The lower house of parliament passed the amendments in June.

Only local firms currently have to pay the 25% excise tax.

The State Tax Committee told Interfax that the new rules would grant foreign partners in existing PSAs a ten-year grace period on the excise tax payments, from the date the PSA was signed.

The Senate will also debate a new procedure that unifies the levy of royalties on natural gas, oil and gas condensate produce under PSAs.

Three PSAs are in progress in Uzbekistan. Russia’s Lukoil (RTS: LKOH) has been developing the Kandym group of gas fields in the Bukhara region and exploring in the Ustyurt region under agreements worth more than US$2 billion since 2004. The company in 2008 started to develop fields in the Ustyurt and Southern Hissar regions under PSAs worth approximately US$700 million.

A consortium of Uzbekistan’s Uzbekneftegaz, Lukoil Overseas, Petronas, KNOC and CNPC is developing fields in the Uzbek sector of the Aral Sea under PSAs with an initial value of US$100 million.

Uzbekistan owns at least 50% of the three PSAs at the initial stage.

Malaysia’s Petronas plans this year to launch two PSA projects worth a total of US$1.1 billion in southern Uzbekistan.