Investor conducted seismic works, search drilling and after that decided that it is commercial unreasonableness to continue further works in licensed area, the source said.

In February 2008, Daewoo International Corp and Uzbekneftegaz signed an agreement on studying Koskuduk and Ashibulak investment blocks at Usyurt field within five years. The volume of investments made up US$40 million, of which US$27.6 million should be invested in the first three years. The agreement came into force in December 2008.

The source said that geological exploration is not secured from failures and each investor takes into account profitability from its operations. He said that the sides will continue talks on exploration works in other regions.

Uzbekneftegaz said that total forecasted reserves at two investment blocks, which were offered for Daewoo, made up about 360 million tonnes of standard coal.

According to Uzbekneftegaz, currenly Uzbekneftegaz offers 48 investment blocks for foreign investors. Foreign investors conduct exploration and development works at 18 blocks, and joint exploration works conducted on 2 blocks. The company and investors hold talks on eight investment blocks.

Uzbekneftegaz said that currently, 64% of total perspective fields with forecasted resources of 1.4 billion tonnes of standard coal.