Uzbekistan intends to hand over to foreign companies some 50 fields with falling oil production rates for furhter development on the basis of risk-service deals.
According to the chairman of Uzbekneftegaz, Bahodir Sidikov, undistributed risk contracts are not something new for Uzbekistan. This principle had been used, and now there are several investors with whom agreements on the implementation of such contracts have been entered into.
“What does this form of cooperation entail? We have more than 50 fields with falling oil production. These are mostly small fields or fields with hard recoverable reserves, where today Uzbekneftegaz does not see no potential for large investments. We will offer them for review to foreign investors if they are ready to attract new technologies and are confident that they could increase production at these fields, "he said.
Signing such a contract, Sidikov added, means that a foreign company will make investments entirely at his own risk.
"For example, if a field produces 100 tons of oil over a certain period of time – this figure sha be deemed basic production rate and will belong to Uzbekneftegaz. And the entire volume on top of that shall be shared. For example, if the company produces 150 tons, then an additional 50 tons will be shared through a formula Uzbekneftegaz and the investor,” he noted.
Sidikov added that for Uzbekneftegaz, the conclusion of such contracts is primarily a possibility of attracting investments without risk and for production increase. A foreign investor will also receive a good profit if the necessary technologies are used.
