The mechanism was developed within the agreement on product-sharing agreement in relation to the Urga, Kuanish and Akchalak deposit groups between Uzbekneftegaz and PETRONAS Carigali Overseas Sdn. Bhd.

The document is directed at increasing mining and export of hydrocarbons through attraction of foreign direct investments and special modern technologies to development of deposits in Uzbekistan.

Earlier, PETRONAS Carigali Overseas Sdn. Bhd. handed over rights and liabilities within the agreement to its subsidiary PETRONAS Carigali (Urga) Ltd, which was registered at the Justice Ministry of Uzbekistan. The subsidiary will finance the project due to own resources and credits.

Uztransgaz will export natural gas, produced at the above-mentioned deposits. Uzneftegazdobicha will realize gas condensate in internal market through Ustyurtgaz.

Within the project, the foreign investors will procure 60% local goods and services from total volume, while Uzbek citizens will get 80% of jobs.

Malaysian state oil firm Petronas and the Government of Uzbekistan signed a production-sharing agreement for a group of Urga, Kuanish and Akhchalak fields, located in the Uzbek northern region of Ustyurt, in May 2008.

The agreement was signed for 15 years and in preliminary phase, the sides will get 50% of product each. It is expected that 70 million cubic meters of gas will be produced annually at the fields.