LUKOIL is one of the largest publicly vertically integrated oil and gas companies in the world, accounting for over 2% of world oil production and about 1% of proven hydrocarbon reserves.
Every day millions of people in more than 100 countries buy products of the Company, energy and heat, improving the quality of their lives. More than 100 thousand people combine their efforts and talents to ensure the effective development of the Company and its advanced position in the market. For LUKOIL, Uzbekistan is one of the key regions where the company implements its mega-projects. The total investment of LUKOIL in Uzbekistan economy exceeded $5 billion, while the expected volume of investment for the entire period of project implementation is $8 billion, turning the company into the largest investor in the country.
On June 16, 2004, the Government of Uzbekistan and a consortium of investors consisting of LUKOIL JSC and Uzbekneftegaz National Holding Company signed a Production Sharing Agreement for Kandym group of fields, Khauzak and Shady blocks and the Kungrad block. By 2018, LUKOIL intends to increase the production of natural gas in Uzbekistan to 18 billion cubic meters per year. Full and timely fulfillment of investment commitments indicates that LUKOIL implements its large-scale projects in full volume thanks to its own innovative production potential and experience, as well as close and fruitful cooperation with Uzbekistan partners.
It should be noted that during the years of independence Uzbekistan has developed a broad system of legal guarantees and benefits for foreign investors, created a favorable investment climate, characterized, first of all, by political and economic stability. Favorable business environment in the country is based on a number of legislative acts, such as the Laws “On guarantees and measures of protecting the rights of foreign investors”, “On foreign investments”, Decrees of the President of the Republic of Uzbekistan “On additional measures of promoting foreign direct investments”, “On measures of attracting foreign direct investment in oil exploration and production”, “On additional measures of stimulating the export of products produced by enterprises with foreign investment”, etc.
The experience of fruitful cooperation with Uzbekneftegaz National Holding Company showed that the company is one of the most important components of fuel and energy sector of Uzbekistan, making a huge contribution to the energy independence of the republic.