“Lukoil Uzbekistan” company paid $103.1 million to the state in the first half of 2023 as part of the product distribution agreement. It is the first time that the payment of a gas producing enterprise in Uzbekistan within the framework of such a transaction is disclosed.
The company “Lukoil Uzbekistan Supply and Trading Ltd”, which owns a number of gas fields in Uzbekistan, paid $103.1 million to the state during the 6 months of 2023 as part of the product distribution agreement.
According to the state budget execution report for the first half of 2023 published by the Ministry of Economy and Finance, this amount was converted into national currency and transferred to the state budget revenues (1 trillion 213.8 million soums).
This is the first disclosure of funds paid to the state by companies that own gas fields in Uzbekistan under production sharing agreements (SRP). The Ministry’s report did not disclose the income from contracts with companies other than Lukoil.
In February 2023, according to the information provided by the Minister of Energy Jurabek Mirzamakhmudov, the joint venture with the Russian company “Lukoil” will extract natural gas, condensate and sulfur from 13 fields in Uzbekistan. According to the product distribution agreement, 50% of the profits from the enterprise’s activities will be owned by Lukoil and 50% by the state.
It was also said that 55% of the final profit will belong to the Uzbek side, and 45% to the Russian side, due to the fact that Uzbekneftegaz has a 10% share as an investor in the joint venture.
At the beginning of the year, it was also known that 295 oil and gas fields were opened in Uzbekistan, 60% of which are owned by joint ventures and foreign companies.
