Tashkent, Uzbekistan (UzDaily.com) -- Surhan Gas Chemical Operating Company LLC, which is the operator under the Production Sharing Agreement in relation to the Uzbekiston Mustakilligi investment block, issued an official statement urging the media not to defame the reputation of foreign companies implementing open entrepreneurial activity in the republic in the interests of the people of Uzbekistan.

The company noted that the investor under the Agreement is Surhan Investments Limited from Hong Kong. This project is very capital intensive and the investor’s agreement to finance it clearly demonstrates faith in the development of Uzbekistan and the stability of its economy.

The agreement regarding the investment block "Uzbekistan Mustakilligi" was signed in 2017. At that time, development and production at the field were not carried out, although the first well was drilled back in 1975 by the Uzbekneft association.

Over the next 40-plus years, it was not possible to put the field into operation, since its reserves are difficult to recover, the gas is sour, and the field itself is characterized by very difficult mining and geological conditions. This is confirmed by the findings of the international company DeGolyer & MacNaughton.

The investor undertook to carry out geological exploration, develop the 25 Years of Independence field, build a gas chemical plant and the necessary infrastructure. The volume of investments in the project is estimated at more than US$2 billion  with the potential to increase. At the same time, the investor bears all financial and geological risks for the project.

Considering all these difficulties and the fact that the implementation of the project under such conditions may take years, the Agreement included a condition for a period of 35 years. At the same time, this condition does not apply to any other deposits and blocks in the Republic of Uzbekistan. It applies exclusively to the 25 Years of Independence deposit.

It is important to note that the state exercises strict control over the implementation of the project. In accordance with the Law "On Production Sharing Agreements", all work under the Agreement is carried out by the Operator established in the Republic of Uzbekistan.

After the completion of the construction of the gas processing plant and the start of production, the income from gas sales (after paying taxes and reimbursement of expenses) will be distributed in the ratio of 50% to 50% between the Republic of Uzbekistan and the investor, and in case of good financial performance of the project, the share of the State will be 80%.