Petronas signed an agreement on activities and main principles for the Baisun block production sharing agreement (PSA) and an exploration agreement for the Surkhanski block with the government of Uzbekistan. Both blocks are located adjacent to each other in the Surkhandarya region of the country.
It also signed a memorandum of cooperation (MOC) for petrochemical projects with the Uzbek national oil company Uzbekneftegaz National Holding Company (UNG).
The agreement signed for the Baisun block outlines the main principles and provisions for the PSA. Under the PSA, which Petronas Carigali Overseas (PCOSB) expects to enter into in 2008, it will hold a 100% equity stake and will be the operator for the block.
The Malaysian firm said that the exploration agreement for the Surkhanski block grants PCOSB the rights to carry out exploration work in the block, measuring 7,200 square kilometers, and will subsequently pave the way for a PSA on the discovery of hydrocarbons. The agreements for the two blocks will enhance its presence in the upstream sector of Uzbekistan.
The MOC for petrochemical projects allows Petronas and UNG to undertake joint studies and paves the way for the two parties to cooperate in the development of downstream petrochemical projects in Uzbekistan.
