Bloomberg publishes article about the tasks of reforms in the oil and gas sector of Uzbekistan
22/05/2019 21:17
Bloomberg publishes article about the tasks of reforms in the oil and gas sector of Uzbekistan
22/05/2019 21:17
Tashkent, Uzbekistan (UzDaily.com) -- Bloomberg published an article devoted to the process of reforming the oil and gas sector of Uzbekistan. The article is based on an interview with the chairman of the company’s board, Bahodirjon Sidikov.
As the author of the publication Zulfugar Agayev notes, the goal of the reorganization of Uzbekneftegaz is to enhance the efficiency of the oil and gas sector, increase its transparency and attract foreign capital.
The process of such a major reform of the oil and gas industry, the journalist Bloomberg connects with the completion of self-isolation of Uzbekistan, which lasted several decades. There are also such weighty factors as the fact that Uzbekistan is the most populous country in Central Asia and one of the three largest natural gas producers in the former Soviet Union.
"The government has stepped up efforts to attract additional foreign investment, since it aims to increase gas production by 17% by 2025," the article titled "The state-owned gas producer in Uzbekistan will be divided" says.
"Uzbekneftegaz until the end of this year will be divided into three separate companies. One will produce gas and oil and manage refineries, the second will manage pipelines, and the third will control gas distribution,” Bloomberg reported quoting Bahodirjon Sidikov.
The publication also notes such important steps of economic reforms in Uzbekistan as the liberalization of foreign currency and the improvement of the quality and availability of economic data. These decisions of the President Shavkat Mirziyoyev were highly appreciated by the International Monetary Fund.
The publication further cites Sidikov, about plans to introduce a public-private partnership in the gas distribution system, to attract more than US$30 billion in foreign direct investment for projects over the next six years.
It was noted that Uzbekneftegaz attracted US$1.2 billion of foreign direct investment (FDI) in the first four months of 2019, which is more than twice the original target figure of US$550 million.
Confirmation that the oil and gas sector will be more open, in particular, are the ongoing negotiations of Uzbekneftegaz with Credit Suisse Group AG and other companies to attract US$1 billion in the debut sale of Eurobonds around the middle of next year. It was noted that in February 2019, Uzbekistan placed eurobonds for US$1 billion.
“This year, Uzbekneftegaz plans to pump 43 billion cubic meters of gas. The country as a whole expects to increase production to 63.6 billion cubic meters from 60 billion in 2018 and is aimed at 70 billion by 2025, ”the article further notes. There is an active partnership with world leaders in the sphere - PJSC "Lukoil", PJSC "Gazprom", China National Petroleum Corporation are already taking part in the process of gas production in Uzbekistan. Negotiations are underway on behalf of the government with BP PLc and Total SA.
Today, the country’s domestic demand for gas is about 40 billion cubic meters per year, the agency notes. Uzbekistan exports gas to Russia, Kazakhstan, Tajikistan and Kyrgyzstan. Last year, gas exports to China via three pipelines increased to 9 billion cubic meters, and it is planned to increase volumes, taking into account the use of the fourth line.
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