Lukoil, Itera sign deal for production, exploration in Uzbekistan

By the OGJ Online Staff

HOUSTON, July 23 -- Uzbekistan company Uzbekneftegaz and Russian companies Lukoil and Itera have signed a production-sharing agreement for oil and gas fields in Bukhara-Khivinsky and Gissarsky regions of Uzbekistan and an agreement for exploration in the country, said Lukoil.

Lukoil will hold 45% of the PSA; Itera will hold 45%; and Uzbekneftegaz will own 10%.

The field development period will be 25 years, which can be extended another 10 years. Maximum gas production under the contract will be 8--10 billion cu m/year.

The companies anticipate spending $750 million to bring production from the fields to project capacity.