Petronas’ subsidiary Petronas Carigali Overseas Sdn Bhd inked a deal detailing the main terms for the production sharing contract for the 3,150-square kilometre Baisun block in the Surkhandarya region in Uzbekistan, Petronas said in a statement.
Under the production sharing contract which would be entered into in 2008, Petronas Carigali would hold the entire stake and operate the block. It is now doing exploration work on the block.
The Malaysian firm also signed a pact to look for oil in the 7,200-square kilometre Surkhanski block which is located next to the Baisun block, it said.
"The agreements for the two blocks will enhance Petronas’ presence in the upstream sector of Uzbekistan," Petronas said.
Petronas Carigali has a 20 percent stake in the Aral Sea production sharing contract in Uzbekistan, which is at an exploration stage. Other partners in the venture are state energy company UzbekNefteGaz, CNPC International Ltd, parent of PetroChina, Korea National Oil Corporation and Lukoil Overseas Holding Ltd.
Petronas also signed a pact with Uzbekistan state energy company UzbekNefteGaz for the firms to develop downstream petrochemical projects in Uzbekistan.