American Epsilon plans to invest more than $ 2 billion in exploration in Uzbekistan
By Abdul Kerimkhanov
American investment company Epsilon Development Company plans to invest more than $ 2 billion in the development of five large investment blocks with gas fields in Uzbekistan, according to the Kazakh Forbes.
Epsilon specializes in the development of hard-to-recover gas reserves and leads projects ranging from exploration to operation. Cooperation with Uzbekistan is carried out on the basis of a special government decree.
Kazakh Forbes informs that the development of heavy fields is a high-cost production requiring consideration of both technical and financial risks, and the investor is trying to furnish its activities with favorable conditions.
As edition notes, Uzbekistan has managed to protect its interests and build relations according to the principle of public-private partnership (50 to 50) in such a way that the amount of the investor's expenses does not affect the share received by the state from the sale of marketable products.
Epsilon, in turn, attracts industry leaders such as Schlumberger, the largest oilfield services company, founded in 1,926 and operating in 85 countries.
Two investment blocks of five, Surkhandarya and Fergana are particularly complicated. In Surkhandarya, gas deposits are located at a depth of almost 7,000 meters, with an increased risk of accidents. In the next two years, these deposits will require about $ 2 billion of investment.
Diplomatic relations between the United States and Uzbekistan were established on February 19, 1992.
Since then, the United States and Uzbekistan have developed a broad-based relationship, cooperating in such areas as border and regional security programs, economic relations, political and civil society issues, and English language training.
Uzbekistan and the United States signed a declaration on Strategic Partnership and the Basics of Cooperation in 2002.
Thanks to active cooperation with American companies, two countries managed to increase the bilateral trade by almost two times and bring it to $332 million in January-September 2018.
Currently, more than 200 enterprises with the participation of U.S. companies are successfully operating in Uzbekistan. American capital took part in the creation of 25 enterprises since the beginning of 2018.
Uzbekistan has signed a trade and investment framework agreement with the United States and other Central Asian countries establishing a regional forum to discuss ways to improve investment climates and expand trade within Central Asia.
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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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