Page 19 - bne_newspaper_December_01_2017

Eurasia
December 1, 2017 www.intellinews.com I Page 19
Russian infrastructure investor Filatov joins $2bn Uzbek gas field project
bne IntelliNews
Russian entrepreneur and infrastructure investor Andrey Filatov has joined a consortium of investors for the $2bn development of the 25 Years of Independence gas field in Uzbekistan under a production sharing agreement
(PSA), a November 29 press release from the businessman said.
The commitment comes amid an albeit cautious opening up of the Uzbek economy, where until now major Lukoil has been the only significant Russian investor in the oil and gas sector. Filatov speculates that more international investors, including those from Western countries, could follow if the current policies continue.
“An ongoing massive government programme
[in Uzbekistan] to step up conversion and boost exports of finished products envisions, among others, creating a favourable investment climate and attracting new foreign investors,” said Filatov in the statement.
The businessman — who is also senior coach of the Russian national chess team — commented that Uzbekistan “demonstrates openness and has been creating new opportunities for business”.
In recent months, steps taken by the country’s new President Shavkat Mirziyoyev to open up the economy include the lifting of currency controls which had long inhibited foreign investment.
The development of the 25 Years of Independence gas field is part of the PSA for the O’zbekiston
Mustaqillik investment block signed on April 5, during Mirziyoyev’s official visit to Russia. The reserves of the 25 Years of Independence gas field and the O’zbekiston Mustaqillik investment block are estimated at more than 100bn cubic metres (cm).
The project will also include the construction of a gas chemical complex in Uzbekistan’s Surkhandarya region. Financing for the project will be carried out via direct investments and loans from international financial institutions.
The consortium of investors includes Gas Project Development Central Asia AG, Altmax Holding and Uzneftegazdobycha. Filatov will participate in the consortium through Brighttree Holding,
a special-purpose vehicle that has taken a 50% stake in Altmax Holding. His share in the gas field development project will amount to 37.5%.
The gas field development will be operated by the Surhan Gas Chemical Operating Company, established by the consortium. Gas field service companies Halliburton, Baker Hughes, Schlumberger and National Oilwell Varco were also contracted for the projected.
The gas field development will be completed
in two phases. In the initial stage, to be carried out in 2017-2018, the consortium plans to drill
a confirmation well, confirm the reserves, develop a feasibility study and sign commercial terms and conditions, the statement said.