American-Uzbekistan Chamber of Commerce
BUSINESS NEWSLETTER
  
Week in Review:
March 29, 2013 - April 5, 2013
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2013 Marks AUCC 20th Anniversary

Since 1993 the American-Uzbekistan Chamber of Commerce has been at the forefront of advancing trade and business relations between the US and the Republic of Uzbekistan. AUCC prides itself in catering to the needs of our members, providing them with a platform to interact with policy makers in the US and the Republic of Uzbekistan and ensuring that bilateral commercial relations continue to be on the governments' top agenda.   

 

For the last twenty years AUCC has been a vigorous advocate of the views of the business community to ensure that private sector positions are considered during the development of policies that impact American businesses and the future of U.S.-Uzbekistan relations.    

 

We are delighted that today AUCC is a well-known organization that is recognized for its strength and ability to work closely with a great number of partner organizations. AUCC enjoys excellent working relations with the Embassy of the Republic of Uzbekistan in Washington, D.C., the Government of the Republic of Uzbekistan, Uzbek ministries, associations and organizations as well as the executive and legislative branches of the U.S. AUCC also coordinates its efforts with a great number of international financial institutions, business councils and other professional organizations.

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In This Issue:
AUCC IN BRIEF
Agenda of the Council of Foreign Affairs Ministers' meeting of CIS discussed in Tashkent
Research and Markets: Uzbekistan Exploration and Production (Upstream) Market Analysis and Outlook
Tethys Petroleum to Invest $24.4 Mln in Uzbekistan
Uzbekistan ratifies legal assistance agreement with South Korea
Uzbekistan mining plant to invest $42 mln in two projects
Lukoil, CNPC to develop Uzbekistan's gas condensate fields

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.
en.trend.az

Uzbekistan's Foreign Minister Abdulaziz Kamilov and the Executive Secretary of the CIS, Sergei Lebedev discussed the agenda and other points of the Council of Foreign Affairs Ministers (CFAM) of the CIS, which will take place on April 5, in Tashkent, the Foreign Ministry of Uzbekistan announced on Thursday.

The sides also exchanged the ideas on separate aspects of cooperation of Uzbekistan and CIS.

There was also exchange of ideas about the cooperation of Uzbekistan and the CIS.

According to the Uzbekistan's Foreign Ministry, delegations of foreign ministries from Azerbaijan, Moldova, Ukraine, Belarus, Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan, Russia, Armenia will take part in the meeting.

Special representative of the President of Russian Federation for relations with the countries - participants of the CIS, Head of the Federal Agency for CIS Affairs, compatriots from abroad and Head of International Humanitarian Cooperation (Rossotrudnichestvo) Konstantin Kosachev will attend the meeting as well.

The next CIS Council includes ten questions that cover the most important directions of Commonwealth activities.

Draft documents on the summaries of the CIS Council meeting will be submitted to the Council of Heads of States and Governments of the CIS.

www.fortmilltimes.com

Research and Markets has announced the addition of the "Uzbekistan Exploration and Production (Upstream) Market Analysis and Outlook to 2020 - Drivers, Challenges, Fields, Blocks, Supply- demand and competitive landscape" report to their offering.Uzbekistan oil and gas Exploration and Production industry research work from OGAnalysis is a compulsory report for all analysts involved in the sector. It provides all the key trends and analyzes the drivers and restraints of investing and operating in the market. Comprehensive information on fields, blocks, companies, production and reserves is provided in the report. Further, supply and demand forecasts of oil and gas to 2020 are included in the report.

 

It identifies key investment opportunities in Uzbekistan Exploration and Production market and also details the blocks on offer information. Key strategies and operations of each of the major Exploration and Production companies in the country are analyzed in detail. It updates the major deals and events in the industry from 2011 to 2012.  Read more here.   

en.ria.ru

Tethys Petroleum Ltd will invest a total of $24.4 million in the development of oil fields in southern Uzbekistan by 2016, a source in the Central Asian country's government told RIA Novosti on Friday.

"The project has been included in the investment program for 2013 and subsequent years," the source said.

Last May, Tethys Petroleum, a company registered in Guernsey, the British Isles, signed a contract with the Uzbekneftegaz holding company to increase oil production at the Chegara field in south Uzbekistan's Kashkadarya region.

The production target is 390 tons of oil a day, according to the Uzbek side.

Tethys Petroleum is also implementing a project to increase production of liquid hydrocarbons at the region's Severny Urtabulak field, which currently produces about 1,500 barrels of oil a day.

en.trend.az

The President of Uzbekistan Islam Karimov signed a law 'On ratification of the Agreement between the Republic of Uzbekistan and the Republic of Korea on legal assistance in civil and commercial matters (Seoul, September 20, 2012)'.

The agreement was signed during the visit of Islam Karimov to Seoul in September 2012.

The law on ratification of the agreement was adopted by the Legislative Chamber of Oliy Majlis (lower house) late January this year and approved by the Senate on March 28.

The purpose of the agreement is simplification and availability of judicial procedures on the service of judicial documents, evidence gathering and exchange of information and legal proceeding material.

The document creates favourable conditions for the citizens and legal entities of Uzbekistan and South Korea in providing legal assistance on civil and commercial cases.

Uzbekistan's Almalyk mining and metallurgical plant will invest $42 million in the implementation of two projects in 2013.

One of the projects, worth $26.2 million, envisages the production of mining equipment by the end of 2013.

The other project, totaling $16 million, envisions the reconstruction of foundry engineering.

Capacity for the production of mining equipment, including mills, screens, pumps and hydro cyclones, will initially total 127 units per year.

The project is financed through loans from Uzbek banks in the amount of $15 million and Almalyk plant's equity of $11.2 million.

The plant plans to implement a number of investment projects which envisage increasing production of copper and precious metals.

As reported earlier this year, the Almalyk plant started building an underground mine with capacity of 200,000 tons of ore per year at the Samarchuk site of the existing Kyzyl Olma field.

The project worth $74 million will be funded through Almalyk plant's equity of $35 million, a loan from the Fund for Reconstruction and Development of Uzbekistan (FRDU) worth $14.2 million and loans from Uzbek banks for a total amount of $24.8 million. Construction work is scheduled to be completed by the end of 2015.

In early March, the Uzbek government approved a feasibility study for the construction of an underground mine at Kayragach field in Tashkent region worth $30.56 million.

Implementation of the project will provide additional mining and processing of gold ore in the amount of 80,000 tons. The mine will be put into operation in November 2014.

The project will be financed through the Almalyk plant's own funds in the amount of $10.59 million, an FRDU credit worth $6.72 million and a loan of the Uzbek Ipotekabank in the amount of $13.25 million.

The Almalyk plant also plans to build new facilities and reconstruct the Angren gold processing plant by 2016.

The Almalyk Plant is the only copper producer in Uzbekistan and one of the largest manufacturers of non-ferrous metals in Central Asia. The plant accounts for nearly 90 percent of silver production and 20 percent of gold production in the country. The plant is composed of two mining companies, two processing plants and two metallurgical plants.

The plant has the rights to develop copper-molybdenum and lead-zinc ores in the area of Almalyk in Tashkent region. The Almalyk Plant's resource base includes copper-porphyry ores at the Kalmakyr and Sary Cheku fields in Tashkent region, the lead-zinc-barite ore deposit Uch-Kulach in Djizzak and the lead-zinc ore deposit Khandyza in Kashkadarya region. The share of the Almalyk plant in Uzbekistan in the production of silver and gold is 90 percent and 20 percent of the total volume respectively.

The total production of the plant is estimated at more than $300 million annually.

Uzbekneftegaz National Holding Company, Russian energy giant Lukoil and China National Petroleum Corporation (CNPC) have agreed on joint development of the gas condensate fields in Uzbekistan.

A source at Uzbekneftegaz told Azerbaijan's Trend news agency that the Uzbek government had instructed relevant ministries and entities to prepare a draft agreement between Uzbekneftegaz, Lukoil and CNPC and equip Khojasayat section of the Dengizkul deposit, Khojadavlat and East Alat fields of the Karakul investment block, located in Bukhara-Khiva region.

The agreement may be signed in the second quarter of 2013.

The source said that the government also issued an instruction to work out a preliminary feasibility study within a two-month period to equip, prepare and transport gas from the Khojasayat section of Dengizkul deposit, Khojadavlat and East Alat fields.

Currently, Lukoil is implementing three projects in Uzbekistan under the production sharing agreement (PSA) on Kandym-Khauzak-Shady-Kungrad, involved in the development of deposits of South-West Gissar as well as explores the Uzbek part of the Aral Sea within an international consortium.

To date, the cumulative gas production of Lukoil in Uzbekistan has hit more than 15 billion cubic meters, with the volume of investments exceeding $2 billion. Lukoil plans to produce at least 18 billion cubic meters of gas in Uzbekistan by 2016 and to increase the volume of investment up to $5 billion by 2017 within the first two projects under the PSA terms.

Lukoil predicts that the total volume of investments will exceed $5.5 billion, which will turn the company into the largest investor in Uzbekistan's economy.

In June 2006, China National Oil and Gas Exploration and Development Corporation (CNODC), CNPC's subsidiary, signed an agreement with Uzbekneftegaz for exploration operations on five investment blocks within Ustyurt, Bukhara-Khiva and Fergana oil and gas regions of Uzbekistan for five years.

The exploration program worth $260.2 million was fully implemented in 2011. As a result, a number of fields were discovered at the Karakul block and two perspective structures were prepared for drilling.

In June 2012, CNODC and Uzbekneftegaz signed an agreement on the principles of establishing a joint venture for the development of gas condensate fields on the Karakul block. The joint venture is expected to extract up to 1.5 billion cubic meters of gas per year. The initial cost of the project is $650 million.

Uzbekneftegaz, which was established in 1998 and provides over 90 percent of the hydrocarbon production in the country, is a monopoly operator of the Uzbek oil and gas sector. Its capacity allows extracting natural gas in the amount of about 70 billion cubic meters and 8 million tons of liquid hydrocarbons annually.


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