Uzbekistan’s state oil and gas firm Uzbekneftegaz has signed a cooperation agreement with U.S. corporation Cargill, under which the parties will look to attract up to $5 billion in energy investment to boost the central Asian country’s energy security.
Uzbekneftegaz’s international trade and investment subsidiary, UNG Overseas, has signed the agreement with the U.S. conglomerate, the Uzbek oil and gas firm said in a statement.
Uzbekneftegaz and Cargill have agreed to raise long-term financing of up to $3 billion, which could be gradually expanded to as much as $5 billion.
The cooperation agreement is aimed at strengthening Uzbekistan’s energy security, increase resource sustainability, and support sustainable development, Uzbekneftegaz said.
The deal is expected to open up opportunities to attract international investment in Uzbekistan’s energy and water management sectors, the Uzbek company said, without specifying timeframes or naming potential foreign investors.
Earlier this year, Uzbekistan announced energy-related deals with U.S. companies worth more than $4 billion in total.
Uzbekistan’s Energy Minister, Jurabek Mirzamakhmudov, in October announced deals with Air Products, Schlumberger, Baker Hughes, and Gulf Oil.
Air Products will speed up the construction of a petrochemical complex in Bukhara and will be involved in the development of a variety of coal gasification initiatives and the refining of “clean” jet fuel, according to a report published by the government-connected UzDaily information service.
The agreements with Schlumberger and Baker Hughes cover “the implementation of modern technologies, experience and management methods.”
In addition, Uzbek officials have signed a memorandum of understanding with Gulf Oil to develop a network of gas stations across the country.
On a late September visit to New York, Uzbek President Shavkat Mirziyoyev announced a number of deals, including an $8 billion contract to purchase Boeing passenger jets. During a brief meeting with U.S. President Donald Trump, the Uzbek leader expressed an overall intention to conclude business deals with U.S. firms worth about $105 billion.
By Tsvetana Paraskova for Oilprice.com
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