Tashkent, Uzbekistan (PRWEB) November 18, 2010
OTCOB-listed oil and gas exploration and development firm International Oil and Gas Company has signed a memorandum of understanding with Uzbek state oil and gas company, Uzbekneftegaz National Holding Company. The firms will conduct joint studies on improving hydrocarbon recovery on certain long-term production fields in Uzbekistan, with the aim of signing a contract towards this, in accordance with the applicable Uzbek legislation.
It is expected that it would be a similar contractual arrangement to the production enhancement contract (PEC) that International oil and gas has over the North Urtabulak Field in Uzbekistan that has operated successfully for some 5 years. Production from the North Urtabulak Field has increased by 6,000 BOPD within the same 5 year period.
IOGC Central Asia Operations Chief Peter Sidorov shared the following comments this afternoon from International oil and gas headquarters in the US – “We have based our decision to diversify and enhance our strategic position in Uzbekistan on the overwhelming success of our multi-tiered exploration and production program there. Having proven our model and also our ability to operate profitably almost immediately, we will make substantial capital investments into this market both directly and through our strategic partner, Uzbekneftegaz.”