News from the American-Uzbekistan Chamber of Commerce

Business Newsletter

Week in Review:

March 23, 2012 - March 30, 2012

In this issue

AUCC in Brief

World Bank Helps Reduce Energy Losses in the Uzbekistan

Islam Karimov receives Chief of US Central Command

Lukoil Overseas to ramp up Uzbekistan gas flow

AUCC Members

AUCC in Brief

Established in 1993, the American-Uzbekistan Chamber of Commerce (AUCC) is a private, non-profit trade association representing interests of U.S. businesses ranging in size from small private enterprises to large, multinational corporations conducting business in Uzbekistan.

Our Mission: To advocate the views of the business community to ensure that private sector positions are considered during the development of key policies that impact American businesses and the future of U.S.-Uzbekistan relations.

Our Objective: To serve the needs of its members by strengthening commercial relations between the United States and Uzbekistan.

World Bank Helps Reduce Energy Losses in the Uzbekistan

http://finchannel.com of 3/30/2012

The World Bank Board of Executive Directors approved a US$180 million loan to the Republic of Uzbekistan for Advanced Electricity Metering Project.

The Project's objective is to reduce commercial losses of three regional power distribution companies in Tashkent, and the Tashkent and Syrdarya Regions. This will be achieved by improving their metering and billing infrastructure, and the commercial management systems.

In line with the Bank's Country Partnership Strategy and the Government priorities, the proposed project will contribute to increasing the efficiency of infrastructure.

"Advanced meters and associated 'smart' technologies will help control energy use and will benefit both utilities and customers," said Takuya Kamata,

World Bank Country Manager for Uzbekistan. "These technologies allow utilities to monitor and track energy use and potentially control customer end-use appliances and equipment, making utility systems more efficient and reliable. A more intelligently-run power grid can yield greater cost saving."

The project will increase the collection rates of the three power distribution companies, leading to the improvements of their financial viability and operational efficiencies. As a result of the project, around 1.2 million advanced meters and associated communication systems will replace the existing outdated metering; an Energy Data Management/Billing/Customer Relationship Management/Archive system will be installed for the Tashkent and Syrdarya Regions, and the centralized Energy Data Management will be installed in Tashkent city; and the capacities of the three regional distribution companies in re-engineering their procedures in meter reading, billing and collection and improving management efficiency will be enhanced.

It will also encourage electricity consumers to use electricity more efficiently by providing transparent and fair pricing signals, and information on electricity consumption. Public awareness program would be aiming at educating population on the use of energy, explaining social assistance measures for poor households, covering issues related to meters, and promoting energy saving. This will eventually reduce energy waste in the mid to long-term, which will also reduce carbon emission and benefit the environment.

According to The World Bank , this project is a part of a national advanced electricity metering program. The concept of the project was developed in close coordination with Uzbekenergo, Ministry of Finance, and Asian Development Bank , which provides financing for advanced electricity metering systems in another three regional distribution companies.

Uzbekistan joined the World Bank in 1992. The World Bank 's mission in the country is to improve people's livelihoods through supporting economic reforms, modernization of the country's social sectors and infrastructure, and sharing Bank's knowledge and experience with the Government and the people of Uzbekistan. Total World Bank 's current active commitments as of March 2012 make about US$ 600 million for 10 projects.

Islam Karimov receives Chief of US Central Command

http://uzdaily.com of 3/29/2012

President of the Republic of Uzbekistan Islam Karimov met with Commander of the United States Central Command James Mattis at the Oqsaroy on 29 March.

During the conversation the head of our state noted that Uzbekistan and the United States have lately been bolstering comprehensive interaction in such vital spheres as economy and investments, political dialogue, countering new threats and challenges, regional security and stability.

The two sides at the Oqsaroy exchanged views on the current developments in the region, the situation in Afghanistan, as well as prospects of enhancing bilateral relations in areas we share interest, including military and military-technical issues, UzA reported.

James Mattis thanked the President of Uzbekistan for the meeting and conveyed the willingness of the United States to work toward expansion of mutually advantageous Uzbek-American partnership built on principles of respect and confidence.

Lukoil Overseas to ramp up Uzbekistan gas flow

http://www.ogi.com of 3/28/2012

The Uzbek subsidiary of Lukoil Overseas started gas production at the end of 2011 at Dzharkuduk-Yangi Kyzylcha, largest field in the company's Southwest Gissar block in the Kashkadarya region of southeastern Uzbekistan.

Initial stage production is projected to reach 39 bcf/year (OGJ Online, Feb. 8, 2008). The field is in the Amu Darya basin (see map, OGJ, Aug. 5, 1996, p. 19).

In reporting its yearend operating results, Lukoil Overseas said that 2011 seismic surveying and exploratory drilling led discovery of Kyzylbairak-Southeast and Shamoltegmas gas fields and identification of several prospects. The year's work also resulted in an unspecified reserves increase above the block's 1.4 tcf of gas and 23 million bbl of oil and condensate at the beginning of 2011.

The company matured two other prospects for drilling, and it also confirmed the presence of commercial gas volumes in the unexplored area of large Adamtash field, 50 miles north of the border with Afghanistan.

The next steps are to activate a gas processing facility and place Adamtash and Gumbulak fields on production. The $1.2 billion project to establish output of 565 MMcfd includes drilling more than 40 producing wells, building external power supply lines, a gas gathering and processing system, commercial gas pipeline, condensate pipeline, shift camp, field base, and engineering infrastructure.

In early 2011, Lukoil Overseas started production in an initial operating area in the western part of Shady field in the company's Kandym-Khauzak-Shady-Kungrad project. The project consists of five wells making a combined 140 MMcfd of gas, production, gathering, and metering facilities, and a 21-km pipeline. Khauzak-Shady cumulative production reached 350 bcf of gas in mid-2011.

Lukoil Overseas completed a feasibility study and detailed design for integrated facilities for the Kandym group of fields. The project provides that Kuvachi-Alat field will begin operation in 2014 and Kandym field and the Kandym gas processing plant are to start up in 2016.

The company shot 2D seismic and drilled four exploratory wells in Kuvachi-Alat and Parsankul fields, making it possible to expand the fields' design area and increase C1 reserves by 12 million tons of oil equivalent.

Contact Information

The American-Uzbekistan Chamber of Commerce
1300 I Street, N.W., Suite 720W
Washington, DC 20005
phone: 202.509.3744
info@aucconline.com
www.aucconline.com

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