"This year, six ZJ DB320 drilling rigs have been supplied to Uzbekneftegaz, three of these have been launched," he said. Two drilling rigs are working in the bore holes on the Kokdumalak field and one is used for exploration work on the Chilkuvar gas condensate field .

Uzbekistan will get an additional 12 drilling rigs by late 2008 and five drilling rigs in the first half-year of 2009.

According to earlier reports, in 2007-2011 Uzbekneftegaz will buy drilling rigs and 3D seismic exploration equipment for a total of US$274.2 million.

In particular, in mid 2007, Uzgeoburneftegaz (Uzbekneftegaz subsidiary) signed a contract with China Petroleum Technology & Development Corp (CNPC subsidiary) to supply 23 drilling rigs in 2007-2008 and special equipment for US$203 million, as well as with China National Machinery Industry Corporation to supply 10 cementers for US$6.1 million.

The funding of the contracts with Chinese companies will be implemented at the account of the Chinese Eximbank loan for US$177.6 million and Uzbekneftegaz own funds of US$31.5 million. Chinese Eximbank extended its loan in July 2006 for 15 years including a five-year preferential period with 3.5% yearly interest.

In terms of the project, Uzbekneftegaz will also purchase an extended range of equipment for 3D seismic exploration work for US$65 million. It is planned to purchase ten digital telemetric seismic stations for seismic exploration. The purchases will be funded with Uzbekneftegaz own funds.

One drilling rig’s yearly boring will make 5,500 meters, the average seismic work for one unit of seismic exploration equipment is 252 square meters.

Uzbekneftegaz plans to increase the reserves of hydrocarbons in Uzbekistan by 512 million tonnes of equivalent fuel.

Uzbekneftegaz is a monopoly operator of Uzbek oil and gas sector, it was created in 1998 and includes six share-holding companies. In 2007, Uzbekneftegaz reduced production of liquid hydrocarbons by 9% to 4.928 million tonnes as compared with 2006.