India moved a step closer in quest for oil and gas from Uzbekistan

India moved a step closer in its quest for energy from Central Asia with the signing of pacts to prospect for oil and gas in Uzbekistan.

India has already bagged a share in the Caspian Sea basin portion of Kazakhstan, Central Asia's largest country, and inked a gas pipeline deal with the region's third major repository of hydrocarbons, Turkmenistan.

Following closed door and delegation level talks between Prime Minister Manmohan Singh and visiting Uzbekistan President Islam Karimov, the two sides signed 34 pacts. Many of them involving the private sector on the economic side, especially in IT & telecom, pharma, textiles, leather and chemicals flowed from inter-governmental agreements signed earlier in the day.

The two sides discussed connectivity problems that have stymied better trade ties. With Pakistan unwilling to give transit rights to India and areas of Afghanistan next to it still restive, the two proposed spurs of the Trans-Afghan corridor and the Central Asia –Persian Gulf corridor were examined.

While economics appeared to dominate, the two leaders also exchanged notes on the security situation especially in Af- Pak. Uzbekistan, like India, has old ties with the Afghan Northern Alliance and supports New Delhi's formulation of making a distinction between the good and the bad Taliban.

Tashkent clarified that it had not held talks with the Quetta Shura (bad Taliban in India's lexis) but only with some former field commanders who had no link with this outfit of Taliban leaders.

In Afghanistan, both countries have joined hands in supplying electricity to Kabul – India erected the transmission network and Uzbekistan supplies the power. Tashkent is also constructing a railway line in Afghanistan, its first, that could eventually help it overcome its landlocked limitations.

Dr. Singh and Mr. Karimov condemned terrorism in “all its forms” but stopped short of demanding an end to sanctuaries to terrorists. Uzbekistan had emasculated the dreaded Islamic Movement of Uzbekistan (IMU) through military action and supported a similar course in neighbouring Tajikistan whose quarter of population is of Uzbek origin. Post-2001, IMU found sanctuary in the Af-Pak region and caused several deadly attacks on security forces of both countries till the killing of its leader Tahir Yuldashev last year.

Significantly, India welcomed the entry into force of the Nuclear Weapon-Free Zone in Central Asia and “was prepared to extend the necessary security assurances.” So far such assurances have been offered by recognised nuclear weapon States. Analysts consider it significant that India made the offer and also that a nuclear weapon-free zone accepted it.

Explaining the quest for hydrocarbons, an official said one of the advantages of Central Asia was that despite having the third highest gas reserves in the world after the Persian Gulf countries and Russia, many parts have not been explored. One such is Uzbekistan's Karakal-Pakistan which is estimated to contain 70 billion cubic meters of gas reserves.

Uzbekistan also offered shale gas technology to India for prospecting in Assam, Rajasthan, Gujarat and some coastal areas.

The two sides touched on the Shanghai Cooperation Organisation (SCO) of which Uzbekistan is a member and India an observer. Dr. Singh informed about India's readiness to join SCO for maintaining its energy security as also give a fillip to cooperation in transportation, agriculture and education. The SCO has always been very positive about India's contribution in Afghanistan.

South Korea enjoys sole presence in Uzbekistan, what others waiting for

South Korea will pursue "country-specific" cooperation programs with Central Asian countries to better secure natural resources and help build industrial infrastructure for the rapidly emerging economies, the government said Tuesday.

The finance ministry said that a comprehensive cooperation package strategy will be followed for large, resource-rich countries such as Kazakhstan and Uzbekistan, with deal-by-deal tie-ups being sought for smaller countries like Tajikistan.

"Cooperation will be tailor-made to meet each country's needs and development levels, with every effort being made to ensure all parties benefit," the ministry said.

It said tie-ups will make full use of overseas assistance funds and local investments with South Korea moving to co-develop natural resources, and build industrial and social infrastructure for the rapidly emerging economies.

Seoul can also help countries lay the foundation for sustainable growth by building a foundation for manufacturing business, setting up information technology industries, and modernizing the agriculture and forestry sectors.

"Central Asia represents the Eurasian heartland and poses tremendous growth potential," the ministry in charge of Seoul's overall economic policy said.

South Korea will seek to expand the exchange of expert personnel, move forward on free trade pacts, and take steps to streamline legal and administrative guidelines to facilitate cooperation, the ministry said.

Uzbekistan launches 2 new South Korean joint ventures

Uzbekistan has launched two new gas-related joint ventures with South Korea, the Uzbekistan Daily news web site UzDaily.com reported on Monday.

The first venture will design and build stations for compressed natural gas, while the other venture will create automobile gas containers.

Korean firms EngineTech, Kwangshin, Korea Gas Corporation (Kogas) and Kolon are part of the venture to create 50 compressed natural gas stations. Uzbekistan plans to install 352 gas compressor stations throughout the country between 2011 and 2014, UzDaily.com reported.

The second venture is expected to produce 120,000 units of the containers on an annual basis. The company is a joint creation between Kogas, South Korea’s Kolon Industries Inc. and Korean firm NK. Uzbek firm Zavod Uzbekkhimmash, which is a subsidiary of state-owned gas firm Uzbekneftegaz, is also a partner in the venture.

The company was established in central Navoi, to take advantage of the country’s free industrial and economic zone (FIEZ) that provides tax incentives for foreign investors.

South Korea invested $21.4 million in the projects, which overall cost $42.8 million to create.

Tethys Petroleum company talks on progress at Tashkent Conference

Tethys Petroleum Limited ("Tethys" or the "Company" (TSX:TPL)) today provided information on progress at the 15^th Uzbekistan International Oil and Gas Conference ("OGU") in Tashkent and in parallel with this signed a contract with the Institute of Geology and Prospecting for Oil and Gas Deposits (the "Institute") of NHC Uzbekneftegaz ("UNG"), the State oil and gas company, to review materials on exploration areas in the Ustyurt region and the Bukhara-Khiva region.

Dr. David Robson, Chief Executive Officer of Tethys, today gave a presentation on the "Doris oil discovery (in Kazakhstan) and the potential of the Ustyurt basin". The Ustyurt basin covers large areas both in Kazakhstan and Uzbekistan. To date there has not been a commercial oil discovery in the Uzbek portion of the basin though the geology is similar to the area where Tethys has made a commercial oil discovery (Doris) in the Kazakh portion, some 35 km from the border of the two countries. Tethys believes that, by applying the same geological model and techniques used in the discovery of Doris to the Uzbekistan portion of the basin, there is very good potential for finding oil there too.

In conjunction with OGU, Tethys announced it has signed a contract with the Institute to study the potential of two separate prospective areas in Uzbekistan with a view to Tethys applying for suitable projects in these areas. The study will involve the assessment of existing data and the oil and gas bearing prospectivity of the areas on the basis to prepare proposals for the Government of Uzbekistan for further exploration activities. Tethys views both areas as having very good oil and gas potential.

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. See our Annual Information Form for the year ended December 31, 2010 for a description of risks and uncertainties relevant to our business, including our exploration and development activities.

Uzbekistan-China ties will continue to expand

Uzbekistan and China has witnessed consistent development of trade-economic and investment cooperation. Since first years of its independence, Uzbekistan has been developing relations with China.

The amicable ties based on mutual trust, is expected to evolve in the same spirit for the welfare of the two nations, Uzreport.com reported. Both countries have signed 170 documents covering various spheres of bilateral relations.

It was recalled that during the state visit of President Islam Karimov to China in 2005, an Interstate agreement on partnership relations, friendship and cooperation was signed.

The agreement further enhanced mutual cooperation.
Over the last period, a large number of summits and visits of various delegations have been held. The issue of overcoming the ramifications of the global financial crisis was an important aspects of the interstate cooperation. As a result, Uzbekistan and China are paying special emphasis on expanding trade-economic, investment and financial cooperation.

China is also the leading investor in Uzbekistan and second among Uzbekistan’s trade partners.
Last year the volume of bilateral trade amounted to €2.85 billion. Around 347 Chinese firms have invested in Uzbekistan.