1. The University of World Economy and Diplomacy
Analytical research
INVESTMENTS INTO UZBEKISTAN: PROSPECTS OF OIL AND GAS INDUSTRY DEVELOPMENT
Abdujabar RASULOV г.

2. CONTENTS OF RESEARCH
1. Investment opportunities of Uzbekistan in oil and gas industry 2. The main strategic locations of industrial production (in sample of Navoi, Shurtan, Angren and Almalyk)
3. Cooperation of Uzbekistan with other Asian countries in oil and gas production.

3. ESSENCE OF ENERGY COMPLEX3
ESSENCE OF ENERGY COMPLEX
«…the oil and gas industry of Uzbekistan is presently one of the most dynamic ones in Central Asia. Recent developments are shaping new opportunities for large, medium and small oil and gas players that could profit from taking an proactive position in the oil and gas sector of the country»
Islam Karimov
The President of the Republic of Uzbekistan

4. INVESTMENTS INTO UZBEKISTAN4
INVESTMENTS INTO UZBEKISTAN
Uzbekistan has been a net exporter of energy since 1996, mainly of natural gas, electricity, petroleum products and uranium.
Exports of natural gas and electricity can be increased to % of annual production.

5. 5
OIL AND GAS RESOURCES
Uzbekistan takes respectively the fourth and third places by proven reserves of oil (599 million barrels) and gas (1.85 tcm).
Since 2004 Uzbekistan has successfully distributed 18 oil and gas investment blocks, mostly to Russian and Chinese companies.
The country strives to ensure sustainable production growth by attracting more international investors and easing tax burdens for them.

6. 6
FDI directed mainly to the mining, tobacco, automotive and oil and gas sectors
Table. Foreign investments in (USD million)
Foreign investments
FDI
2003
823.9
96.5
2004
516.5
80.1
2005
602.1
166.7
2006
754.6
333.8
2007
746.6
545.5
2008
895.7
683.8
2009
1,285.9
1,013.6
2010
1,415
975.3

7. 7
The biggest share of foreign investments is directed to oil and gas industry
Foreign investments
FDI
Oil and gas
574.3
565.4
IT and telecommunications
217.5
206.3
Light industry
95.33
95.3
Electrical engineering
94.7
Transport
87.5 -
Agricultural sector
76.6
31.8
Education
31.5
Public health services
24.1 1
Ferrous and non-ferrous metallurgy
7.0
Construction materials industry
6.9
Chemical industry
1.4
Others
68.9
17.7
Total
1,285.9
1,013.6

8. INVESTMENT PROGRAMMES8
INVESTMENT PROGRAMMES
yy. Period
large-scale investment
modernization and technical renovation of basic industries
budget worth $24.2 billion

9. INVESTMENTS 9 LUKOIL Gazprom Chinese CNPC
5 investment blocks in the country and extracted around 10 bcm of natural gas in 2010.
acquired exploration and production licenses for 7 investment blocks at the Shakhpakhty field with expected volumes of 500 million cubic meters by 2012.
Gazprom
Chinese CNPC
is currently conducting geologic exploration at 4 investment blocks with scheduled annual production of up to 6 bcm of natural gas.

10. should reach 220,000 meters from the current 10,000.
At the same time Uzbekistan plans to maximize investment in exploration and production.
Annual exploration drilling volumes set by 2012
should reach 220,000 meters from the current 10,000.
Expected growth of drilling activities opens exciting opportunities for oilfield service providers and equipment producers.

11. Uzbekistan is becoming an increasingly important gas exporter.11
Uzbekistan is becoming an increasingly important gas exporter.
Exports of natural gas from the country increased 9 times in the period of from 1.4 bcm to bcm annually. The volumes are expected to grow further and reach 18 bcm by 2010.
Downstream developments in Uzbekistan are also on the rise. By 2011 production of LPG will increase to 615,000 tons per year, almost triple of the current figure.

12. 2010 2015 Oil and gas forecasts 12 6.05mn b/d 6.89mn b/d 13.82mn b/d
Regional oil use
6.05mn b/d
6.89mn b/d
13.82mn b/d
15.08mn b/d
Oil production
8.19mn b/d
7.76mn b/d
Oil exports

13. 2010 2015 Oil and gas forecasts 13 636.3 bcm 747.7 bcm 787.9 bcm
Regional gas use
636.3 bcm
747.7 bcm
Gas
production
787.9 bcm
954.2 bcm
206.5 bcm
151.6 bcm
Gas exports
Uzbekistan’s share of consumption in 2010 was 7.78% and production %. By 2015, its share of demand is to be 7.49%, with the country accounting for 9.01% of supply.

14. BID CITIES: Shurtan Gas and Chemical complex14
BID CITIES: Shurtan Gas and Chemical complex
Petrochemical
4,0 billion cubic meters / year
tons of polyethylene /year

15. 15
SHURTAN
Natural gas extracted from Shurtan gas fields is subjected to a ten-time refinement. The extent of refinement reaches 99,99 %. 85 % of 3 billion 564 million cubic meters of gas processed this year is refined from other gas components and supplied to meet customers’ needs. The remaining 15 % is utilized to produce over 100 thousand tons of liquefied gas, 102 thousand tons of gas condensate and 600 tons of sulfur. 

16. “NAVOI” FREE INDUSTRIAL-ECONOMIC ZONE16
“NAVOI” FREE INDUSTRIAL-ECONOMIC ZONE
The Concept of the Free Industrial-Economic Zone on the base of Navoi airport grounds the forming the innovation-industrial, transport-logistical, social and recreational complex in 3 stages with mastering about 500 hectares of free area on each of them.

17. 17
NAVOI
Main operative directions of entities in FIEZ "Navoi" are production of a wide range of highly technological, competitive in world markets, products by introduction of up-to-date, highly efficient equipment and techniques, technological lines and modules, innovative technologies.

18. NAVOI 18 Distance from FIEZ "Navoi" to the nearest infrastructure :
- freight terminal of Navoi airport - 4 km,
- railway – 4.5 km (Navoi-Uchkuduk-Nukus railway),
- highway "E-40" - 2 km,
- electric power substation – 0.8 km,
- water distribution unit km,
- gas distribution unit km.
NAVOI

19. NAVOI for 7 years 19 from €3 to €10 million from €10 to €30 million
The privileges are available depending on the volume of foreign direct investments:
from €3 to €10 million
for 7 years
for 10 years, with reduction of profit and unified tax payment rates by 50 per cent in the next 5 years
from €10 to €30 million
for 15 years, with reduction of  profit and unified tax payment rates by 50 per cent in the next 10 years.
more than €30 million
The Zone is located on 564 hectares next to the highway E-40 and the Navoi International Airport, connected to international railway routes towards countries of Europe (via Russia and Turkey), South East Asia (via China), Middle East and the Gulf (via Iran).

20. Oil & Condensate Refinery Compliance to the international20
Oil & Condensate Refinery
BUKHARA REFINERY
2,5MT/year
10 types of oil products (kerosene, diesel, petrol, lubricants, etc.)
Compliance to the international
Standards

21. 21
At present day the coal mining is carrying on at 3 deposits: Angren, Shargun and Baysun.

22. 22
COAL RESOURCES
Uzbekistan disposes of explored coal reserves at a volume of mln.tn including brown coal mln.tn, black coal – 47 mln.tn. Forecasting coal resources form over 5,7 bln.tn. Large reserves of black coal are concentrated in the south regions of the Republic – Surkhandarya and Kashkadarya regions.

23. 23
ANGREN : KAOLIN
Except kaolin on Angren deposit there is a number of other sorts of rock, which also can be used in different branches of industry: limestone, silica clay, quartz sand, loam.
Resources of silica clay, being of interest for cement production as active mineral additives, on coal open-pit mine "Angrenskiy" are estimated at more than 12 mln. m3.

24. export of Uzbekistan - $158.2 mln., import - $1.456 bln. 24
COOPERATION: UZBEKISTAN AND SOUTH KOREA
Seoul recognized the Independence of Uzbekistan on 30 December The diplomatic relations were established on 29 January 1992. 
in 2010 the trade turnover increased by 31.5% and accounted for $1.614 bln.
export of Uzbekistan - $158.2 mln., import - $1.456 bln. 

25. COOPERATION: UZBEKISTAN AND CHINA25
COOPERATION: UZBEKISTAN AND CHINA
The People's Republic of China recognized the independence of the Republic of Uzbekistan on 27 December The diplomatic relations were established on January 2, 1992.
in 2010 trade turnover accounted for $2,085 mln. (growth 1.7 %), including export $899,9 mln., import - $1185,4 mln. 

26. COOPERATION: UZBEKISTAN AND JAPAN26
COOPERATION: UZBEKISTAN AND JAPAN
Japan recognized the independence of Uzbekistan on December 28, The diplomatic relations were established on January 26, 1992. 
10 joint ventures in fields of foreign and domestic trade, transportation services, tourism and healthcare, engineering and metalworking, light industry, including one -with a 100% Japanese capital were set in Uzbekistan. 12 representatives of Japanese companies are accredited in Uzbekistan. 
In 1999 «Uzbekistan-Japan» friendship society was established. Its main partners are «Japan-Uzbekistan» Friendship Society and «Fukushima-Uzbekistan» Cultural and Economic Exchange Association. 

27. THANK YOU
FOR ATTENTION!