Uzbekneftegaz, KMPO to create joint venture

Russian media reported that the sides signed a memorandum of understanding, which envisages implementation of joint project within the localization programme in oil and gas industry.

In particular, it is planned to organize capacities on production of gas-pumping equipment on the base of Bukhara Repair and Mechanic Plant.

Uzbekneftegaz is planning to create own gas-pumping equipment capacities, which will produce 30 units of equipment and 1,000 units of spare parts a year. The project cost is US$50 million.

The project will be financed due to loan of the Fund for Reconstruction and Development of Uzbekistan, foreign investments – US$20 million and own resources of Uzbekneftegaz – US$10 million.