This project was pursued upon South Korea Prime Minister Han Seung-soo’s visit to Uzbekistan last May when he concluded a basic agreement finalizing the country’s participation in the exploration, and with the final contract signed on exploration conditions between the state-run oil companies of both countries.

Exploration will take off within the first half of this year.

These gas and oil fields located in the Ferghana valley of east Uzbekistan are above medium-size scale and hold estimated gas reserves of 10.5 million tonnes, or 67 million barrels of crude oil.

It is set to launch production, beginning 2011, if the exploration is successful.

"This being the first project to participate as a manager of a resource development group in Uzbekistan, we expect the successful completion of this project to lead to expanded participation in new oil development projects in the country," an official at KNOC said.

South Korea and Uzbekistan have enjoyed fruitful relationships in past decades.

The most recent visit here by a high-powered delegation to induce investments into Uzbekistan is a reflection of the confidence it has in Korean industries, said an official of the Federation of Korean Industries.