THE DEVELOPMENT AND USE OF PRODUCTION SHARING AGREEMENT LAW IN UZBEKISTAN OIL AND GAS
Abstract
Uzbekistan’s probable natural gas reserves are approximately 5.1-6.25 trillion cubic meters, with commercial reserves of about 1.62 trillion cubic meters, making Uzbekistan the world’s 10th largest natural gas producer. Commercial gas reserves in Uzbekistan are double those located in Britain, which is Europe’s largest gas producer, and the Uzbek national holding company Uzbekneftegaz claims the country has developed less than 23% of its gas resources. Given these natural advantages, Uzbek authorities have been working hard to attract foreign investors into exploration and production in Uzbekistan. Efforts include a much-publicized April 2000 Oil and Gas Investments Decree intended to promote Uzbek oil and gas, and the December 2001 introduction of a production sharing agreement (PSA) law. This article will put these efforts into context by examining the Uzbek hydrocarbon industry. This will then be followed by a detailed analysis of the development of a PSA regime in Uzbekistan, provisions of the law, problems with the law, and the limited-to modest success it has had in attracting foreign investment into Uzbekistan.
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References
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Ibidem.
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Ibidem.
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See: Republic of Uzbekistan, The Law on Subsoil, Arts 3-4, 7, 23 September, 1994.
See: Republic of Uzbekistan, Natural Monopolies Law: Law No. 398-I On Natural Monopolies (adopted 24 April, 1997).
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Ibidem.
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Ibid., Art 50.
Ibid., Art 5.
See: Republic of Uzbekistan, Foreign Investment Law: Law No. 609-I On Foreign Investments (adopted 30 April,
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See: Republic of Uzbekistan, The Law on Subsoil, Art 26.
See: Republic of Uzbekistan, The Law on Concessions, Art 24 (adopted 30 August, 1995).
See: V. Saparov and A. Frolov of Baker and McKenzie, “Evolution and Developments of Oil and Gas Legislation in Uzbekistan,” Russian/CIS Energy and Mining Law Journal, January 2003, p. 33.
See: Republic of Uzbekistan, Presidential Decree (unnumbered) On Measures to Attract Direct Foreign Investments into Oil and Gas Extraction (issued 28 April, 2000).
Ibidem.
Ibidem.
Ibidem.
See: Law No 71-II On Licensing of Specific Kinds of Activity dated 25 May, 2000 (published on 15 June,2000).
See: Republic of Uzbekistan, On Agreements on the Division of Products, Law No. 312-II, 7 December, 2001.
Ibidem.
See: APS Review Gas Market Trends, Uzbekistan: Privatization, Vol. 63, Issue 15, 11 October, 2004.
Ibidem.
Ibidem.
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Ibidem.
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Ibidem.
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See: Republic of Uzbekistan, On Agreements on the Sharing of Products, Law No. 312-II, Art 5, 7 December, 2001.
Ibidem.
Ibid., Art 6.
Ibid., Art 9.
Ibid., Art 12.
Ibid., Art 16.
Ibid., Art 24.
Ibid., Art 28.
Ibid., Art 26.
Ibid., Art 9.
See: Republic of Uzbekistan, The Law on Subsoil.
See: V. Saparov and A. Frolov of Baker and McKenzie, op. cit., p. 34.
See: Republic of Uzbekistan, On Agreements on the Sharing of Products, Law No. 312-II, Art 14, 7 December,2001.
See: V. Saparov and A. Frolov of Baker and McKenzie, op. cit.
See: Republic of Uzbekistan, On Agreements on the Sharing of Products, Law No. 312-II, Art 14, 7 December,2001.
See: V. Saparov and A. Frolov of Baker and McKenzie, op. cit., pp. 34-35.
See: Republic of Uzbekistan, The Law on Concessions (adopted 30 August, 1995).
See: Republic of Uzbekistan, Presidential Decree No. 1652 On Additional Incentives and Privileges Granted to Enterprises with Foreign Investments (issued 30 November, 1996).
See: Republic of Uzbekistan, Law No. 609-I, On Foreign Investments (adopted 30 April, 1998).
See: Republic of Uzbekistan, Presidential Decree (unnumbered) On Measures to Attract Direct Foreign Investments into Oil and Gas Extraction (issued 28 April, 2000).
Interfax Petroleum Report, Uzbekistan Working to Speed Up PSA Projects, 30 July, 2003.
See: Republic of Uzbekistan, Amendments to the PSA Act, 31 October, 2003.
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