TASHKENT, Sept 20 (Reuters) - Uzbekistan plans to sign at
least three deals with large foreign energy companies this year
and five more next year as it aims to boost its natural gas
output, chief executive of state energy firm Uzbekneftegaz said
on Friday.
The list of potential partners in exploration and
development agreements includes BP, Total,
Azerbaijan's SOCAR, Russia's Rosneft and Novatek
, Bakhodir Sidikov said on the sidelines of an energy
conference in Tashkent.
Potential investors are seeking guarantees that they would
be able to export whatever they produce, Sidikov said, but
Tashkent is instead offering them guaranteed offtake at prices
"at which the project makes economic sense."
We have some projects where if you use the international
price you can get 60% IRR (internal rate of return)," he said.
"Nobody expects 60% IRR."
Asked what profitability levels he considered acceptable,
Sidikov said: "Between 11 and 15-16%."
Next year, Sidikov said, Tashkent plans to sign five more
agreements.
Uzbekistan started actively working on attracting foreign
investment after President Shavkat Mirziyoyev took over in late
2016 following the death of his predecessor Islam Karimov.
Among the challenges faced by the resource-rich nation of 32
million in its quest to bring in investors was the fact that all
of its geological data was only available on paper and in the
Russian language, Sidikov said. Tashkent is now working with
Schlumberger to build a digital geological database.
Sidikov said Uzbekneftegaz, which produces 42 billion cubic
meters (bcm) of gas - out of Uzbekistan's total output of 63
bcm, aimed to add 4-5 bcm to the figure next year to ensure it
can fully meet domestic demand.
He said the company was pressing ahead with plans to issue a
debut $1 billion Eurobond next year and expand the pipeline
through which it pumps gas to China by 2022-23.
"We do have available natural gas to export additionally to
China," he said, adding that the volumes and pricing were still
being discussed.
(Reporting by Olzhas Auyezov; Editing by Toby Chopra)