Prospective between Prospective between Uzbekistan and Japan in Uzbekistan and Japan in

oil and gas industryoil and gas industry

Mr. Mr. ShavkatShavkat MajitovMajitov

First Deputy Chairman,First Deputy Chairman,National Holding Company National Holding Company

““UZBEKNEFTEGAZUZBEKNEFTEGAZ””

CURRENT POSITION

TO DATE THE “UZBEKNEFTEGAZ” TAKES:

place in the world production of the natural gas

place among CIS companies for the fuel-energy production

Oil & Gas Oil & Gas IndustryIndustry

Contribution to the total industry production - 18%

Exploration & Development

193 hydrocarbon fields have been discovered in the Republic of Uzbekistan. 93 fields are under the development. 67 are prepared for development. On the other 33 field exploration works are being done

OIL & GAS PRODUCTION

TODAY THE LEVEL OF HYDROCARBON PRODUCTION IS 33% HIGHER THAN THE REACHED ONE IN 1991

52,9

54,5

57,9

61,2

67,4 67,668,7

69,7 70,0 69,8 70,669,4

70,671,3

71,372,1

52

57

62

67

72

77

mln

. ton

s of

oil

equi

vale

nt

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

1991 is the base year

Oil & Gas regions of Uzbekistan

I

IIIIIIVV

I

II

IIIIV

VStudied territory of the oil&gas regions – 28%

Aral Sea

Usturt

Buhara-Khiva

III Gissar

Surkhandarya

Ferghana

Oil & Gas Regions of UzbekistanOil & Gas Regions of Uzbekistan

60% of the territory of the Republic of Uzbekistan is 60% of the territory of the Republic of Uzbekistan is prospective for oil and gasprospective for oil and gas

Ustyurt Region (110 000 sq. km.)Ustyurt Region (110 000 sq. km.)BukharaBukhara--Khiva Region (44 400 sq. km.)Khiva Region (44 400 sq. km.)Gissar Region (4 400 sq. km.)Gissar Region (4 400 sq. km.)Surkhandarya Region (12 500 sq. km.)Surkhandarya Region (12 500 sq. km.)Fergana Region (17 000 sq. km.)Fergana Region (17 000 sq. km.)

There are 193 oil and gas fieldsThere are 193 oil and gas fields

FERGHANA REFINERY

Oil RefineryOil Refinery

8,7 MT/year50 types of oil products (kerosene, diesel, petrol, lubricants, etc.)

compliance to the international standards

(1958)

(rehabilitated in 2000) by MITSUI and TOYO ENGNEERING

Oil & Condensate RefineryOil & Condensate Refinery

BUKHARA REFINERY (1997) by TECHNIP

2,5 MT/year10 types of oil products (kerosene, diesel, petrol, lubricants, etc.)

compliance to the international standards

Gas Processing Gas Processing

MUBAREK GAS PROCESSING PLANT (1971)

- 24 billion cubic meters / year

SHURTAN GAS PROCESING PLANT (1980)

- 20 billion cubic meters / year

PetrochemicalPetrochemical

SHURTAN GAS CHEMICAL COMPLEX (2001)by ABB Lummus Global

4,0billion cubic meters / year

125 000tons of polyethylene / year

Алматы

Полиэтилен- 5,0 тыс. тонн

В Россию Природный газ - 9,58 млрд. куб. м;Полиэтилен - 36,0 тыс. тонн

Природный газ - 1,6 млрд. куб. м;Полиэтилен - 4,0 тыс. тонн

Природный газ - 0,75 млрд. куб. м;Сжиженный газ - 1,0 тыс. тонн

Природный газ - 0,72 млрд . куб. м;Сжиженный газ - 4,0 тыс. тонн

Сжиж

енный газ - 25,0 ты

с. тоннСжиж

енны

й газ -

40,0 тыс. т

онн

Полиэтилен - 1,0 тыс. тонн в Турци

ю

В Польшу

Полиэтилен - 6,0 тыс. тоннВ НидерландыПолиэтилен - 2,0 тыс. тонн

В УкраинуПолиэтилен - 6,0 тыс. тонн

EXPORT ROUTESEXPORT ROUTES

Gas Transportation SystemGas Transportation System

TOTAL LENGTH OF THE MAIN PIPELINES

MORE THAN 13 000 km

QUANTITY OF COMPRESSORS

MORE THAN 250

Gas Transportation SystemGas Transportation System

Legislation on InvestmentsLegislation on Investments

The Foreign Investments LawThe Foreign Investments Law

The Law on Guarantees and Measures on The Law on Guarantees and Measures on Protection of Foreign InvestorsProtection of Foreign Investors

The Production Sharing Agreements LawThe Production Sharing Agreements Law

The Investment Activity LawThe Investment Activity Law

The Subsoil LawThe Subsoil Law

Special Presidential Decree on attraction of direct foreign Special Presidential Decree on attraction of direct foreign investments for exploration and production of oil and gasinvestments for exploration and production of oil and gas

1. Exclusive right for implementation of an exploration work and further development of discovered fields;

2. Priority right for obtaining of new area (in case of non-commercial discoveries);

3. Ownership and free taking-off of own part of hydrocarbons and petroleum products;

4. Exemption from all types of taxes, deductions and custom duty while an exploration work for oil and gas is being implemented;

5. Exemption from a profit tax from the start of oil and gas production for the period of 7 years, and further a profit tax rate shall be fixed at the rate of 50 percent of an available rate;

6. Exemption from both a property tax and profit tax the foreign participants related to share holding in joint ventures;

7. Exemption from a mandatory selling of a part of currency received for the period of investment capital replacement to an exploration work.

Existing Investment Blocks MapExisting Investment Blocks Map

International CooperationInternational CooperationProduction Sharing Agreements withProduction Sharing Agreements with

Exploration ContractsExploration ContractsCNPC InternationalGazpromGazprom (Russia)(Russia)PetronasPetronas CarigaliCarigali (Malaysia)(Malaysia)

Joint Study Agreements on Exploration worksJoint Study Agreements on Exploration worksKorea National Oil Corporation (KNOC)Korea National Oil Corporation (KNOC)

Joint VenturesJoint Ventures -- there are more than 12 JVs on E&P, Refinery, there are more than 12 JVs on E&P, Refinery, Engineering, Construction, Services (RU, MY, US, SW).Engineering, Construction, Services (RU, MY, US, SW).

New JV with Korea Gas Corporation (KOGAS)New JV with Korea Gas Corporation (KOGAS)for construction of gas chemical complexfor construction of gas chemical complex

NEW PROJECTS

I

IIIIIIVV

I

II

IIIIV

V

Usturt

Buhara-Khiva

SurkhandaryaV Ferghana

Tashkent

SamarkandBukhara

Gazli

Termez

Urganch

Nukus

Ferghana

AndijanNamangan

III South-West Gissar

PSA between Republic of Uzbekistan and UNG, LUKOIL-Overseas, PETRONAS Carigali, CNPC International, KNOC for exploration Uzbek part of Aral Sea

Joint Study of UNG and Petronas

UNG & CNPC signed an exploration contract for 4 investment blocks

New Gas Chemical Complex

Business OpportunitiesBusiness Opportunities

Exploration Works for Oil & Gas on the territory of Exploration Works for Oil & Gas on the territory of the Republic of Uzbekistanthe Republic of UzbekistanCreating Joint Ventures for the development of Oil & Creating Joint Ventures for the development of Oil & Gas Fields as well as for new equipment productionGas Fields as well as for new equipment productionIncreasing production in old oil & gas fieldsIncreasing production in old oil & gas fieldsNew technologies in oil refinery and gas processing New technologies in oil refinery and gas processing (e.g. GTL)(e.g. GTL)Alternative sources of energy (e.g. biomass) Alternative sources of energy (e.g. biomass) Energy Conservation Energy Conservation

THE LIST OF PROJECTS

NoNo Title of the projectTitle of the project ObjectivesObjectives Project costsProject costs((M USDM USD))

1.1. Exploration works in the investment Exploration works in the investment blocks of the Republic of Uzbekistanblocks of the Republic of Uzbekistan

•• interpretation of existing G&G data and interpretation of existing G&G data and materialsmaterials;;•• conducting seismic surveyconducting seismic survey;;•• drilling wild cats and exploration holes drilling wild cats and exploration holes . .

100,0100,0

2.2. OilOil--slime waste disposal facility slime waste disposal facility rehabilitation project in rehabilitation project in FerganaFerganaRefineryRefinery

•• refining 25000 tons/y of oilrefining 25000 tons/y of oil--slimeslime;;•• additional productionadditional production•• environmental protectionenvironmental protection..

10,010,0

3.3. Feasibility Study for the construction Feasibility Study for the construction of new oil fraction of new oil fraction hydrofininghydrofining facility facility and rehabilitation of catalytic cracking and rehabilitation of catalytic cracking unit Lunit L--3535--11/300 in 11/300 in FerganaFergana Refinery. Refinery.

•• replacement of an old oil fraction replacement of an old oil fraction hydrofininghydrofiningfacility Gfacility G--24;24;•• to maintains of the vessel pressure in reactor at to maintains of the vessel pressure in reactor at 3,0 3,0 MPaMPa;;•• additional sulfur refinement as per international additional sulfur refinement as per international standards (less than standards (less than 0,3%);0,3%);•• high quality base and motor oil productionhigh quality base and motor oil production;;•• replacement of an old cracking unitsreplacement of an old cracking units;;•• improvement of cracking process and improvement of cracking process and obtaining accidentobtaining accident--free operationfree operation..

0,5 0,5 --1,0 (1,0 (FSFS))ии

45,045,0(costs(costs))

4.4. GasGas--toto--liquid liquid ((GTLGTL)) technology technology applicationapplication

•• oil products production oil products production ((dieseldiesel, , gasolinegasoline etcetc) ) from natural gasfrom natural gas

more than 200,0(FS stage)

New Investment Blocks New Investment Blocks

Waste disposal facility of Fergana Refinery

Maximum capacity - 3200 cub.m./hour. Potential aggregation of oil-slime – up to 20000tons

What is necessary:

а) rehabilitation of waste disposal facility of Fergana Refinery in order to archive the following parameters for reutilization of waste water:

- oil products – no more 20 mg/liter; - suspended solids – no more 25 mg/liter.

b) to develop and apply oil-slime disposal technology.

Oil hydrorefining facility G-24

Operated since Jan,1967. 3 lines. Capacity360000 tons per year.

New tough requirements to color up to 1,0-1,5 pts, sulfur content up to 0,3%.

In order to archive international standard new oil hydrofining facility with capacity up to 300000 tons per year

Catalytic cracking facility L35-11/300

In operation since Dec, 1965 to produce high octane component of gasoline.The raw material – low octane gasoline (80-185 С), Monometallic catalyst АП-56 replaced to bimetallic Rg482,582-1,2, and catalyst Al Co Mo replaced to HR 306 C-1,2 produced by Procatalyse (AXENS). Technological process and modification project has been developed by Lengiproneftekhim (Russia) in association with Toyo Engineering Corporation (Japan).

Synthetic liquid fuel is a hydrocarbons composition produced on a base of

Fisher-Trops effect.. It represents catalytic hydrogenation of

СО under the pressure with aggregation of hydrocarbons mixture:

nCO + H2 CnH2n+2 + H2O

Основные направления химической переработки природного газа с целью получения синтетического жидкого топлива ( GTL)

Природный газ

Риформинг ( паровой, углекислотный)

Каталитическое окисление

Синтез- газ

Синтез Фишера - Тропша

Синтезметанола

Диметиловый эфир (ДМЭ)

Синтетическое жидкое топливо (СЖТ)

Синтездиметилового эфира (ДМЭ)

Окисление

“UZBEKNEFTEGAZ”National Holding Company

21, Akhunbabaeva str., Tashkent, 700047Republic of Uzbekistan

tel:(+ 99871) 133 57 57(+ 99871) 136 02 10

fax:(+ 99871) 136 77 71

Thank you for your attention!Thank you for your attention!