American-Uzbekistan Chamber of Commerce
BUSINESS NEWSLETTER
  
Week in Review:

September 13, 2013 - September 20, 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.

If your company is interested in joining AUCC, please contact our office at 202-509-3744 or info@aucconline.com.  We invite you to be part of our organization and participate in our activities and events.   

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In This Issue:
AUCC IN BRIEF
Uzbekistan implements first stage of oil and gas condensate field modernization
Uzbekistan, Czech Republic prepare for political talks
Lukoil publishes gas production figures in Uzbekistan
China's Unmatched Influence in Central Asia

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 will invest $359.3 million in the implementation of the first phase of the South Kemachi oil and gas field modernization (Kashkadarya region, south of Uzbekistan) until 2017, the Cabinet of Ministers decree on 'Measures for implementation of the 'South Kemachi field modernization' investment project.

According to the document, the facilities for production, transportation and re-injection of gas into the reservoir, the so-called 'cycling process' at the first phase (up to 2017) will be constructed.

The project will be financed by the funds of the Uzbekneftegaz National Holding Company to the amount of $326.307 million and the Uzbek Fund for Reconstruction and Development's loan worth $33.015 million.

According to the specialists, the total project cost is estimated at $579.2 million.

It is planned to build 37 operating wells and a booster station within the second phase until 2021. It is planned to ensure production of 3.29 billion cubic meters of gas, 243,830 tons of crude oil and 77,080 tons of condensate at the field.

It was reported that Uzbekistan intends to modernize oil and gas fields worth $2.35 billion by late 2020.

Uzbekistan reduced the production of liquid hydrocarbons by 11.6 per cent up to 3.165 million tons in 2012 compared to 2011. Oil production fell by 17.4 per cent to 1.561 million tons and gas condensate by 5.6 per cent (to 1.604 million tons). Natural gas production fell by 0.2 per cent to 62.911 billion cubic meters last year.

www.azernews.az  

 

Uzbek Foreign Minister Abdulaziz Kamilov and Czech Ambassador to Uzbekistan Ginek Peyha exchanged views on the schedule of the upcoming Uzbek-Czech political contacts and on holding in Tashkent the next meeting of the intergovernmental commission on trade-economic and scientific-technical cooperation.

The Uzbek Foreign Ministry reported that the parties also discussed the state and prospects of bilateral relations, issues of expanding the legal framework of cooperation.

The previous meeting of the joint intergovernmental commission on economic, industrial, scientific and technical cooperation was held in Prague in December 2012.

The meeting discussed the issues of mutually beneficial cooperation in the fields of energy, renewable energy, environmental protection, pharmaceutical industry, food industry, the prospects of cooperation in the field of transport and tourism.

Economic relations between Uzbekistan and the Czech Republic are regulated by inter-governmental agreements on trade, economic, scientific and technological cooperation, mutual protection and promotion of investments, avoidance of double taxation.

There are thirteen Uzbek-Czech joint ventures in Uzbekistan. A number of leading companies of the Czech Republic opened their offices in Uzbekistan. They work in such areas as food and textile industries, oil and gas sector, production of plastic products and tourism.

www.azernews.az  

 

Lukoil Uzbekistan Operating Company, a subsidiary of Russia's oil giant Lukoil, produced 20 billion cubic meters of gas at the gas fields in Uzbekistan by early September 2013, the company reported.

In particular, commercial gas production began in 2007 within the framework of Kandym-Khausak-Shady-Kungrad project implemented since 2004 jointly with Uzbekneftegaz National Holding Company.

In 2008, Khausak-Shady reached the project level of production at three billion cubic meters of gas per year. The first starting complex in the western part of the Shady site was commissioned in November 2011.

As a result of supplementary exploration of the contract area and construction of the adjusted volumetric digital geological model of the Khausak-Shady field, the planned natural gas production is expected to reach 3.7 billion cubic meters in 2013.

The supplementary exploration of the field is underway, including in the northern part of the Shady site which is expected to be commissioned in 2014. This will significantly raise the level of production of natural gas.

Currently a booster compressor station is being constructed at the Khausak site. It is planned to be commissioned in 2014 and will provide an increase in production by 20 percent annually.

Lukoil implements 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.

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. The company 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.

Lukoil increased production of natural gas in Uzbekistan by 24.2 percent in 2012. Last year the company produced in Uzbekistan 4,257 billion cubic meters of gas.

carnegieendowment.org  

 

China has come to displace both the United States and Russia as the great power with the most influence in Central Asia. Chinese President Xi Jinping just ran a ten-day victory lap through the region. Rarely has a leader of a major power accomplished so much in such a short time. Xi's trip included state visits to four countries, an appearance at the Shanghai Cooperation Organization (SCO) summit in Bishkek, and a stop in Moscow for the G20 meeting and bilateral talks with Russian President Vladimir Putin. The economic potential of the joint projects that were inaugurated, the bilateral and strategic partnerships that were signed, and the themes underscored in Xi's major addresses testify to China's importance in the region. By adopting policies that avoided the formal or even informal invoking of a "Great Game," China is emerging as the big winner, with successful engagement on its terms and only in issue areas relating to its direct national security. This does not mean that either Russia or the United States has been fully displaced. But Beijing's strategy of developing investment projects that both sides find genuinely beneficial, and avoiding all discussions of domestic political affairs, has made it an increasingly more attractive foreign partner.

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