28 july 2017

Central Asia news

China will deliver $209 million worth of equipment to Uzbekistan

28.04.2007 10:01 msk

Ferghana.Ru news agency

Business China

China Petroleum Technology & Development Corporation (subsidiary of China National Petroleum Corp. or CNCP) and Sinomach are expected to deliver drilling rigs worth $203 million to Uzbekistan by 2009. Sinomach alone will additionally provide $6.1 million worth of special equipment.

Judging by the latest resolution signed by the president of Uzbekistan, the hardware will be paid for with $177.6 million loaned by the Chinese Eximbank for 15 years and with $31.5 million provided by Uzbekneftegaz.

Uzbekneftegaz also intends to buy approximately $65 million worth of seismic exploration complexes between 2007 and 2011, their provider to be determined at special contests. The equipment in question is needed as means in implementation of the state program to up the prospected resources by more than a million tons of by 2020.

Cooperation with CNCP and Sinomach intensified when China Petroleum & Chemical Corp. (Sinopec) walked out of the extracting project in Uzbekistan worth $110 million. Tashkent had expected the Chinese company to invest this sum in field survey and rehabilitation in the Ferghana Valley by 2010. A joint venture was set up but that was were things came to a screeching halt.

With Sinopec gone, Uzbekistan concentrated on two projects involving CNCP. Chinese National Oil Development Corporation (a CNCP unit) established a subsidiary in Uzbekistan in late 2006 to prospect five areas in the Ust-Yurt, Bukhara-Khiva, and Ferghana regions by 2010. The project was evaluated at $208 million.

A consortium including CNCP, LUKOIL of Russia, Petronas of Malaysia, and KNOC of South Korea will prospect the Aral Sea region for gas later this year.