Below is a brief overview of the Natural Resources sector of Uzbekistan with specification to domestic government bodies:
In Uzbekistan the hydrocarbons sector is one of the state’s economic priorities and strictly regulated by the government, together with the exploration and production of oil and natural gas. The government acts in this sector through its national holding company Uzbekneftegaz.
Uzbekneftegaz Concern was established in 1992 and subsequently transformed into the national holding company. Uzbekneftegaz is presently a vertically integrated company with a three-level organisation structure. The main objective of these changes was to support transition from a command economy to a market economy more attractive to foreign investors. The number of the stock companies within the holding company (the second management level) was reduced to six to improve the management of the third-level companies. The six companies are:
- Uzgeoburneftegaz – engaged in geological exploration, and exploration and development drilling;
- Uzneftegazdobycha – engaged in oil and gas field development; oil, gas and condensate production; natural gas processing; and management of the Shurtan Gas chemical facility;
- Uztransgaz – in charge of an underground gas storage facility, management of gas pipeline assets, including international gas transit; construction and capital repair of pipeline mains; and natural and liquefied gas supply to domestic consumers;
- Uznefteproduct – manages the Fergana, Altyayryk and Bukhara refining facilities engaged in oil and gas condensate refining and petroleum product domestic and export sales. It also owns the country’s tank farms, terminals, oil and gas stations;
- Uzneftegazstroyinvest – manages construction and design entities and maintenance, repair and experimental production entities; and
- Uzneftegazmach – manufactures oil and gas equipment.
Natural resources practice provides an overview of oil and gas and mineral resources sectors of Uzbekistan, including applicable regulations, licensing procedures, templates of documents and agreements (exploration agreement, production sharing agreements, joint operation procedure agreements, term sheets, etc), JV vs. PSA comparisons, maps of exploration areas for foreign investors, forms of advises on related matters.