American-Uzbekistan Chamber of Commerce
Business Newsletter


Week in Review:

May 11, 2012 - May 18, 2012  


In this issue
AUCC in Brief
Uzbekistan to Double Hydrocarbon Reserves by 2030
Uzbekistan: Tethys Eyes Amu Darya, Ustyurt Blocks
Uzbekistan Announced Tender for Modernization of the Syrdarya Thermal Power Station
Ex-Soviet Uzbekistan Plans Privatization Drive
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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. 

Uzbekistan to Double Hydrocarbon Reserves by 2030 of 5/17/2012


National Holding Company (NHC) Uzbekneftegaz plans to increase hydrocarbon reserves by 2.2 times - up to 5.6 billion tons of standard fuel by 2030. It is specified in the materials of the exhibition "Oil and Gas Uzbekistan - OGU 2012", held in Tashkent.
According to the concept of development of oil and gas industry of Uzbekistan until 2030, the annual increase in stocks of raw materials is required in the amount which will be exceeding its exploration by 1.1-1.5 times to establish a reliable source of raw materials and maintenance of gas production in this period, chief Geologist of the holding Mutalib Nurmatov said.
It is planned to increase volume of natural gas reserves by 2.393 trillion cubic meters, of oil - 132.4 million tons, of condensate - 102.6 million tons until 2030, experts of NHC said.
It is planned to implement 2D seismic operations in the amount of 296.6 thousand linear kilometers, 3D - 80,2 thousand square kilometers, prospecting, exploration and parametric drilling - 5.88 million meters to achieve these goals by 2030.
The analysis shows that development on the main productive complexes in all the regions, except for the Bukhara-Khiva region, does not exceed 35.5 percent. So they are the main targets for the placement of the volume of exploration in the future," the publication says.
The main volumes of geological exploration for oil and gas are concentrated in the oil and gas regions, and in the most promising areas within them. In particular, exploration of layers lying below will be activated at Ustyurt, Bukhara, Khiva and Fergana oil and gas regions.
Program of exploration work on prospecting and exploration of deposits of heavy oil and bitumen in the range Korsagly-zone Dasmanaginskoy Surkhandarya region is implemented now to increase production of oil.
In addition, exploration program on prospecting and exploration of deposits of heavy oil within the area Besharcha (southern part of the ridge Babatag) Surkhandarya region and a similar program within the Fergana region are in the development stage.
In order to intensify exploration and increase the rate of hydrocarbon reserves Uzbekistan identified 48 investment blocks, including two units - in potentially oil and gas bearing Middle Syrdarya region. On the 18 units licenses have been issued to foreign investors, on two - Uzbekneftegaz conducts joint exploration with foreign investors, eight - talks are underway with foreign investors to conduct exploration work, and on eight exploration blocks Uzbekneftegaz carries out work.
According to the holding, the amount of recoverable proven hydrocarbon reserves of industrial categories, as of January 1, 2012, amounted to more than 2.5 billion tons of oil equivalent, of which about 65 percent is natural gas reserves.
Explored recoverable reserves of hydrocarbons ensure Uzbekistan's need with the current rate of production of natural gas - for 32 years and oil and condensate - for 33 years.
Uzbekistan has recoverable resources - about eight billion tons of equivalent fuel, and geological - about 2 billion tons, as well as preliminary reserves of oil, gas and condensate in the volume of more than 0.5 billion tons of equivalent fuel.
As of early 2012 Uzbekistan discovered 242 fields of hydrocarbons, of which 192 - gas. Of the newly discovered fields, 104 are under development, 66 prepared for development, exploration is still at 72 fields.
The capacity of the Uzbekistan allows providing natural gas production in the volume of 70 billion cubic meters of gas and 8 million tons of liquid hydrocarbons per year.
Uzbekistan currently ranks third among the CIS countries and twelfth in the world in terms of the annual natural gas production.
According to official statistics, in 2011 oil production in the country dropped by 5.8 percent compared to 2010 and amounted to 1.889 million tons, gas condensate - by 9.8 percent - to 1.696 million tons, natural gas production decreased by 4.4 percent - to 63.04 billion cubic meters.

Uzbekistan: Tethys Eyes Amu Darya, Ustyurt Blocks of 5/16/2012      


Tethys Petroleum Ltd. said its Chegara Production Ltd. subsidiary signed a 25-year production enhancement contract that covers the Chegara group of fields in Uzbekistan.

The Chegara group is an underdeveloped group of fields 14 km southwest of Tethys's North Urtabulak asset and contiguous to Urtabulak gas-condensate field in the Amu Darya basin. The agreement is subject to regulatory approvals.

Chegara reservoirs are Upper Jurassic carbonates at 2,650 m trapped below a regionally prevalent salt and anhydrite seal. Three wells produce moderate gravity oil under natural flow. Tethys sees potential from increasing production at existing wells and large upside in undrilled areas to be identified on new seismic.

The Chegara pact sets out a fixed timetable to potentially sign an exploration agreement for a large exploration block in the North Ustyurt basin in Uzbekistan. Tethys will submit a proposal for an exploratory program for the block by the end of June 2012. The block's geology is similar to that of the Akkulka block on which Tethys discovered Doris oil field.

Uzbekistan Announced Tender for Modernization of the Syrdarya Thermal Power Station of 5/16/2012


The Syrdarya thermal power station announced tender on selection of general contractor on designing, supply, assembly and commissioning of equipment and training of personal within the project "Full-scale modernization of two energy blocks of Syrdarya thermal power station".

In line with tender conditions, the first energy unit should be commissioned on 1 October 2013 and the second one - 1 December 2013. The starting price of customer is US$57.3 million. Tender proposals are received till 11 July 2012.

Within the project, it is planned to carry out wide-scale reconstruction of two power units with the capacity of 300 megawatts each. In the result, the station's capacity will grow by 50 megawatts.

The project is financed due to loan of the Fund for Reconstruction and Development of Uzbekistan and own resources of Uzbekenergo.

Syrdarya thermal power station was commissioned with designed capacity of 3,000 megawatts (10 power units with capacity of 300 megawatts each). The station supplies 13 billion kilowatt/hour electricity to General Electricity Supply System of Uzbekistan or 32% of total power volume, produced in Uzbekistan.

In 2002, Gemany's Siemens AG carried out reconstruction works with the cost of US$45.4 million. The project envisaged modernization of two power units. The project was financed by the European Bank for Reconstruction and Development (US$27.8 million) and own funds of Uzbekenergo. In June 2009, Russia's Siloviyi Mashini repared the fifth power unit. The project cost for about US$20 million was financed by Uzbekenergo's own resources.

Syrdarya thermal power station is the largest power generating station in Uzbekistan and Central Asia. The station produces one third of consumed electricity in Uzbekistan.

Ex-Soviet Uzbekistan Plans Privatization Drive of 5/16/2012


Uzbekistan's government plans to sell off almost 500 state assets over the next two years in an ongoing drive to expand the private sector in this former Soviet nation.

Media in Uzbekistan cited Uzbek state property committee deputy chairman Saifitdlin Gafarov as saying Tuesday that assets in the oil, gas, energy, metals, agriculture, electronics and pharmaceuticals industries sectors will be made available for purchase.

Privately owned news portal cited government officials as saying one aim was to attract foreign investors to help boost Uzbekistan's technological capacity.

The Central Asian nation north of Afghanistan has pursued a strict policy of economic self-reliance since gaining independence in 1991 but has recently shown openness to international financial support.

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Contact Information


The American-Uzbekistan Chamber of Commerce
1300 I Street, N.W., Suite 720W
Washington, DC 20005
phone: 202.509.3744
[email protected]  






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