Tripartite agreement inked for Gas to Liquids project in Uzbekistan

09-Apr-09

South Africa's chemical giant Sasol, Uzbekneftegaz (the National Oil and Gas Company of Uzbekistan), with PETRONAS (Malaysia), have announced signing Heads of Agreement for the development and implementation of a Gas to Liquids (GTL) project, as well as a Memorandum of Understanding for mutual cooperation in the oil and gas industry, in the Republic of Uzbekistan. This follows the positive outcome of the joint pre-feasibility study based on Sasol's proprietary technology. The technology will be deployed to produce high quality transportation fuels from Uzbekistan's abundant domestic gas reserves. Petronas and Sasol are also exploring other areas of cooperation in the Uzbekistan oil and gas industry. "The wealth of gas resources within Uzbekistan makes this an ideal location for a GTL facility and we are delighted to mark this important milestone with our valued partners," said Sasol group general manager, Lean Strauss. The GTL project will enhance Uzbekistan's fuel production and will also make a significant contribution to the economy of the country through foreign direct investment and job creation. The partners are currently in negotiations with the Uzbekistan government regarding the required project enablers and plan to proceed to the next phase of project implementation which involves the establishment of a joint venture company.