PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of April 28, 2000 No. UP-2598

About measures for attraction of direct foreign investments in exploration and production of oil and gas

For the purpose of increase in efficiency of search and prospecting works, growth in volumes of explored reserves of hydrocarbonic raw material and creating favorable conditions for attraction of direct foreign investments in oil-and-gas sector of economy of the republic:

1. Determine that intensive carrying out search and prospecting works in the Ustyurt region and other perspective oil-and-gas areas of the republic, broad attraction for this purpose of direct foreign investments is the major priority in development of oil and gas industry of the Republic of Uzbekistan.

2. Determine that newly opened oil and gas fields in the Ustyurt region can be provided to the foreign companies which carried out exploration works on the specified fields in development on the terms of concessions, for a period of up to 25 years, with the right of prolongation of term of development.

3. Provide to the foreign companies attracted to conducting search and prospecting works on oil and gas, the most favored nation treatment providing:

exclusive right on carrying out in certain territory of search and prospecting works with the subsequent development of any of revealed in the specified territory of fields by creation of joint business or on the terms of concession;

the privilege to provision of the new territory for continuation of search and prospecting works in case of not identification in the territories, contractual on carrying out these works, the resources having industrial value;

the property right and free export provided by constituent documents of joint business or the concession treaty of part of the extracted hydrocarbons, and also products of their conversion on tolling basis;

guarantee for compensation of the actual costs for search and prospecting works in case of discovery of the fields having industrial value in cases of their transfer for further development to Uzbekneftegaz Joint-stock company.

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