Chinese Energy Giant to Expand in Uzbekistan

The China National Petroleum Corp. (CNPC) is looking for ways to expand its role in Uzbekistan. Talks are focusing on an arrangement under which CNPC and the Uzbek state entity, Uzbekneftegaz, would jointly develop new fields discovered during the course of exploration work.

CNPC Vice President Wang Dongjin has announced that exploratory drilling in the Mingbulak oil field in the Namangan province will begin during the second half of 2009. CNPC acquired the Mingbulak exploration license in October 2008. The deposit is estimated to contain more than 30 million tons of oil and annual production is projected at 2 million tons, according to an Uzbekneftegaz statement issued March 24.

Construction on the Uzbek portion of a natural gas pipeline stretching from Turkmenistan to northwestern China began in January. When completed, the pipeline will have a capacity of 30 billion cubic meters of gas per year. CNPC manages two oil and gas projects in Uzbekistan and holds exploration licenses for an area covering 34,000 square kilometers.