The Ministry of Energy and Industry (MoEI) of Tajikistan and Edgo Energy Company signed a production sharing agreement (PSA) here on November 18, according to the MoEI press center.

The agreement was reportedly signed within the framework of Tajik government’s regulation adopted on October 4 this year. 

Production sharing agreements (PSAs) are a common type of contract signed between a government and a resource extraction company (or group of companies) concerning how much of the resource extracted from the country each will receive.  Production sharing agreements can be beneficial to governments of countries that lack the expertise and/or capital to develop their resources and wish to attract foreign companies to do so.

Under the PSA singed in Dushanbe on November 18, Edgo Energy will explore and develop the Surkhsimo and Qarordon fields in the southern province of Khatlon, the MoEI press center reports.   

Meanwhile, the Edgo Energy’s website reports that the company completed phase one of its 2D seismic survey over its prospective gas exploration blocks in southern Tajikistan in October 2011.  The survey was carried out by KazGeco.  Edgo Energy reportedly finalized issues with the Ministry of Energy Industry of Tajikistan relating to the production sharing agreement on the Kyzyltumshuk field and Karadum area in southern Tajikistan.

Launched by Edgo Group, Edgo Energy is an independent, oil and gas exploration and production company with headquarters in London.  The company is focused on acquiring assets in the Middle East, Africa, the East Mediterranean and Central Asia.  The company reportedly brings together an internationally experienced upstream team and Edgo, a long established industrial and financial group with global operations.