The company said that currently the project is under development in cooperation with Japan’s JGS Corporation within the memorandum of cooperation, which was inked between the Government of Uzbekistan and Uzbekneftegaz in 2010.

The company plans to complete preliminary feasibility study of the project by the end of 2012 and plans to discuss future stages of project implementation in the beginning of 2013.

In line with preliminary estimates, the plant will produce up to 1 million tonnes of oil products a year.

The project with preliminary cost of US$600 million will be financed due to own resources of Uzbekneftegaz, loan of Fund for Reconstruction and Development of Uzbekistan and foreign investments for US$300 million.

The perspective reserves of oil shale in Uzbekistan have been estimated at the volume of 47 billion tonnes. In particular, Uzbekistan assessed reserves of Baisun, Jam, Urtabulak, Sangruntau, Aktau, Uchkir, and Kulbeshkak. Oil shale includes small quantities of rare-earth, rare, non-ferrous and precious metals.

The yield of diesel fraction of the oil shale tar is 30% for Sangruntau.