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Investment proposal

Joint-stock company


Joint-stock company

“Surhon parmalash ishlari”

Investment proposal


JSC “Surhon parmalash ishlari” SHARES TO FOREIGN INVESTORS


















I Summary of the company

1.1           General information about the company

By JSC “Surhon parmalsh ishlari” it is founded on base Surhonsky drilling department, created in 1970 on the basis of “Gazlinsky DD” and “OPM Dzharkurganneft”

According to the order of the State Property Committee №504 of March 16, 1996 “the Surhonsky DD” is renamed into JSC of open type “Surhon parmalash ishlari”.

The main shareholder is JSC “Uzgeoburneftgaz” (share 51% ).

The Company is one of the largest companies engaged in drilling oil and gas wells in the Republic of Uzbekistan.

1.2           Advisability of Company Development

Company strengthens its competitive advantage through increased construction in other regions of the Republic of Uzbekistan

Company is committed to the full and timely implementation of the obligations under the concluded contracts.

1.3           Financing Demand

The requirement of attraction of additional financial resources consists in need of production of expenses on the following main objectives:

-         updating of material base of society, including purchase of the latest technologies and the equipment, according to the resolution of the Cabinet of the Republic of Uzbekistan from March 28, 2014 №75 “about measures for the effective order the state property” of more than 20 billion uzs

-         development and introduction of new technologies and equipment

-         increase in the provision of works and services

-         acquisition of office equipment performed by the tasks defined by the Resolution of the President of the Republic of Uzbekistan №RP- 2158 " about measures for further introduction of information and communication technologies in real sector of economy "

1.4           The Company Interest to be Transferred to Investor

JSC “Surhon parmalash ishlari” is formed as a joint-stock company. To date, the Charter capital of the company is 590 160 000 uzs.

The Charter capital of company if divided into pieces of 590 460 shares with par value 1000 uzs ordinary and preference.

Shareholder Name

Shareholder Share

(thousand USD)



JSC “Uzgeoburneftgaz”












The total amount of shares subject to the implementation of a strategic foreign investor is the nominal value of  23,97 USD or 88524 units of shares.

1.5           Resume of Marketing Plan

In the conditions of increasing competition, and also development of new segments requires an active marketing strategy of development.

The marketing strategy of the company is thought over to expected changes in the market and focused on strengthening the company's position in the market, to increase the competitiveness of the estimates, the expansion of the network of services and improve the quality, replenishment of the company's personnel by professionals and young specialists.

-         The main objectives of the company's marketing strategy aimed at ensuring cost-effective work in constantly changing conditions, the competitiveness of the company in order to comply the interests of customers, maintaining of public image, at maximum satisfaction of customers in terms of amount, structure and quality of service, which creates conditions for stability of business relations.

-         The Company has set a goal to increase competitiveness, which involves the strengthening of promotional activities, the creation of additional units to provide services, the organization of an effective system of control, the introduction of new information technologies.

-         The implementation of the tasks is estimated quite realistic, given sufficient support from the founders and relatively high profitability of the сompany.


1.6           Forecast of Key Financial Indicators

1.6.1    Forecast of Receipts and Profits for 2015 – 2019

Given the tendency of work and services for the last 3 years and taking into account assigned to the company's strategic objectives, the total projected revenues in 2019 of $ 95.0 bln. UZS.

Over the past 3 years and taking into account the objectives to the company, the total projected profits in 2019 of $ 4.5 bln. UZS.

1.6.2    Forecast of Investments and Returns for 2015-2019

The volume of investments of the company in 2019 will amount to 50 000.0 million UZS

The average annual income for investment in the period 2015-2019 will amount to 6.5%

Further development and intensification of investment activities of the company is provided.

Implementation of this direction it will be performed by:

-          allocation of funds from the sale of shares of the company in the new issue of financial instruments of large and reliable domestic banks

-         increase in amount of works and services

-         strengthening of monitoring and the Client activity analysis, in which the works and services are executed by the company

1.6.3    Forecast of Net Profit for 2015-2019


It is predicted that net profit of the company for the years 2015-2019 will increase by 6.4 times increase from 432,9 thousand USD in 2015 to 1601,4 thousand USD in 2019

1.7           Key Advantages and Risks of the Project

Taking into account the positive prospects of the main advantages of the company for strategic investors of the company are:

-         Availability of the state share in the authorized capital transferred to JSC "Uzgeoburneftegaz";

-         Corporate governance system to ensure the greatest possible transparency of the activities of the society and adequately assess the risks;

-         Historically a strategic base of the company;

-         Financial stability and solvency of the company guaranteed by the mandatory requirements of the regulatory body confirmed the presence of high ranking and the highest category of issuers;

-         High liquidity of the shares, which creates an opportunity for shareholders to freely dispose of them and leave the company at will;

-         Well-deserved reputation and formed the image of the company among clients and customers

The major risk factors for the project, according to the company, are:

ü    corporate risks;

ü    Risks associated with changes in the scope of work and cost of services;

ü    Risks arising from inflation;

ü    Social risks;

ü    Liquidity risks.

To minimize and reduce the impact of the above risks the company developed strategic and tactical decisions that exclude the occurrence of risk situations.

1.8           Key Indicators of Investment Attractiveness of the Project

The main indicators characterizing investment attractiveness of the participation of potential investors in the capital of the company "Surhon parmalash ishlari" include:

-          Long-term stable growth of the company`s key performance indicators;

-         The existence of the reputation of a stable and reliable partner for most major corporate and individual customers;

-         The legal form of the company, providing the most openness and transparency for investors and shareholders;

-         The authority and high business reputation of major shareholders of the company, such as the Joint-Stock Company "Uzgeoburneftegaz";

-         Have formed authorized capital of JSC "Surhon parmalash ishlari" in 423,7 thousand USD

-         Held by policy priority aimed at the expansion of the regional network and the scale of its activities;

-         High level of financial stability and solvency of the company, confirmed over the past 4 years indicator, exceeding the set standard by 1.2 times.


1.9           Goals and Objectives

In accordance with the Resolution of the President of the Republic of Uzbekistan dated December 21, 2015 №RP-2454 “About additional measures to attract foreign investors in joint-stock companies” in order to involvement in joint-stock companies of foreign investors and managers, to create favorable conditions for their active participation in corporate governance, modernization, technical and technological re-equipment company, to produce high-quality competitive products and its promotion on foreign markets and to radically reduce the state presence in the economy through the reduction of state-owned assets, and shares in the company's authorized capital of JSC “Surhon parmalash ishlari” approved in the list of joint stock companies in which the implementation of 15% shares to strategic foreign investors.

Project implementation will allow increase the scope of work in the oil and gas industry, reduce the use of material and technical resources, transportation costs, energy consumption and thereby reduce their cost, to ensure the competitiveness of the works of “Surhon parmalash ishlari”.

Forming of effective relationships with strategic partners.

Improving the efficiency of human resource management system of “JSC Surhon PI”.

Obtaining high profits as the a pledge of our continuous growth and independence.

II  Description of the Company



2.1 Company History

-         During 1934-1935 wild-cat and exploration drilling "Sredazneft" was carried out.

-         1936-1947, the exploration drilling "Vroshilovneft" was carried out.

-         In 1948, "Termezneft" Trust was organized on the basis of trust "Voroshilovneft.

-         In 1966, "NEC Dzharkurganneft" was organized on the basis of trust "Termezneft".

-         In 1970, "Surkhan Drilling Operations" was created on the basis of "Gazlinsky DD" and "OPC Dzharkurganneft".

-         In 1996, "Surhon DD" transformed into a joint stock company (JSC).


Since the moment of establishment of JSC “Surhon PI”, the management of JSC has been conducting programs of technical upgrade, using modern high-tech equipment and technology. This enabled to increase production capacity to 6 drilling rigs and increase the volume of canal from 6087 meters of mountain rock in 2002 to 22742 meters in 2014.

Throughout these years, many highly qualified specialists have developed here, who pass their most valuable experience to the younger generation.

We are proud of our history and value those who stood at the beginning of JSC “Surhon PI”.


For the last 19 years, as a part of reformation and modernization of the community an aimed work was conducted, which was characterized by the following steps:

First of all, a new methodological base was developed, changes and additions to the internal and founding documents were introduced new statutes regulating employment relationships were developed, aimed at increasing the personal responsibility of staff and strengthening of discipline. The inventory of all acting rules and optimization of their conditions were conducted.

Secondly, the program of re-training of personnel was executed, starting from top management and finishing with line employee levels, for them to possess modern approach to work, market mechanisms for the Client request satisfaction.

Thirdly, a step-by-step reforming of the divisional structure was conducted, as the majority volume of the done work/service was supported by these divisions.

Fourthly, and investment work was organized on a completely new level, aimed at effective utilization of possessed resources taking into account the provision of payback principles, diversification and liquidity.

Fifthly, for provision of financial stability and credit standing of the communication, the works on conduction the expansion of types of services provided and on quality increase were organized.

Apart from this, the measures on development, penetration and wide application of new information technologies were undertaken for the quality increase of the services provided.

2.2.  Information of Owners (Shareholders) of the Company

Shareholder Name


Shareholder Share


(thousand USD)



JSC «Uzgeoburneftgaz»



Physical persons







2.3.  CVs of key managers of Neft va Gaz Kuduklarini Sinash Joint Stock Company are given in the attachment.

2.4. Level of salary (with breakdown by categories) is given in the attachment.

2.5. Financial indicators for the recent 5 years.   




 (thousand USD)     

Indicator name




























Net Profit






Number of workers (in # of people)







-the net profit for JSC for the year 2015 was 1216 million UZS. Thus, the provision of stability in income of the company continued with yearly payment of dividends;

-new, methodical, methodological and market competition compatible base for work of the community was formed, the principles of support of adequate level of financial stability were introduced on the basis of dynamic growth of authorized capital stock.

3. Organization of Operations.

3.1.  Technologies

- “Surhon PI” JSC specialists ubiquitously use the latest practical achievements of leading foreign firms, and scientific developments in the field of technology for well construction:

- develop and implement the recipe for high-polymeric drill solutions with full monitoring and control of parameters;

- use the technology for liquidation of catastrophic absorption zone with usage of drilling method without circulation exit;

- execute the wiring of directional wells with deviation up to 120 meters and depth up to 1500 meters;

- use a modern rock destroying instrument;

- use three-step systems of drilling solution purification;

- use new generation core extractors;

- execute wiring of wells with abnormally high underground pressure;

- execute descent of drive pipes of standard size with thread connections with diameter of 508 mm (20") to 114,3 mm (4 1/2")  

3.2 Production Assets, Capacities, Infrastructure.

JSC «Surhon Parmalash Ishlari» is equipped with modern drilling technology of leading international producers. Penetration of the best developments – is the strategy of the company.

The basis of the drilling machine park constitutes imported drilling machines of 4 Uralmash-3D and 3 new generation Chinese produced ones.

- ZJ-50 DB, deadweight 315 ton, stationary;

- ZJ-50 DBS, deadweight 315 ton, stationary;

- ZJ-30, deadweight 180 ton, mobile - 1 piece;

- Uralmash-3D, deadweight 320 ton, echelon, stationary - 4 pieces.

3.3.  Need for New/Additional Production Equipment.

- ZJ-70 DBS- 2 sets of Chinese production.

3.4. Raw material base

      Raw Material Name    




Diesel Fuel

SC “Uzparta’minot", «Tehnik ta’minlash va butlash »


AI -80 Gas

«Tehnik ta’minlash va butlash»


Chemical reagents

SC “Uzparta’minot", «Tehnik ta’minlash va butlash »


Construction materials

SC “Uzparta’minot", «Tehnik ta’minlash va butlash »


Liquefied gas

UDP “Mubarakneftgaz”, UDP “Shurtanneftgaz”


Spare parts, vehicle tires and accumulators

SC “Uzparta’minot”, «Tehnik ta’minlash va butlash », MTP «Siyob Agromash»

3.5.  Environmental Impact of the Company.

-Provision of temporary land allotment for well construction is produced on the whole period of mineral exploration, after which they must be returned to the land user in the condition applicable for agricultural usage. For provision of effective environmental protection and firm security of core, one must have the following information: description of complex geological construction, reasoning of the choice for necessary equipment and materials, suggested volume of drilling solutions and drill waste, selection and maintenance of progressive systems of productive beds, reduction of material loss in the exploration process, interpretation of economic and ecological indicators of drilling processes.

4. Description of Works/Services

4.1.Description of Product

-Construction of exploration and exploitation wells for oil and gas;

-Special equipment services;

-Chemical drilling solutions and refilling cement analysis services;

-Horizontal and tilted well drilling for oil and gas;

-Transportation services;

4.2. Purpose and Scope of Application

The company purpose is drilling. The company offers the following main services and works for clients:

-Exploratory oil and gas well trail services;

-Rebuilding and reconditioning of exploratory and exploitative oil and gas wells;

-Water well drilling services;

-Special equipment services;

- Chemical drilling solutions and refilling cement analysis services;

-Topographic geodesy work services;

-Horizontal and tilted well drilling for oil and gas;

-Transportation services;



4.3. Key Characteristic

-Dot punching for potential wells;

- Chemical drilling solutions and refilling cement analysis services

-Pouring cement solution on drilling strings of wells;

-Horizontal and tilted well drilling for oil and gas;

- Trial of exploratory and exploitative wells. 

4.4. Distinctive Features, Benefit for Customers

The main features characterizing the quality of services provided by JSC “Surhon Parmalash Ishlari” includes:

- Correct discovery of location of potential wells;

- Notification of overuse of drill solutions and preparation for filling, setting up the cement bridge;

- Organized and effective filling of drilling string cement on new drilling wells under the management of experienced specialists with big work experience;

- Horizontal and tilted drilling of wells in complex beds and places unavailable for vertical drilling;

- Quality and step-by-step learning and identification of character of oil and gas satiety, bed trial under various regimes for calculation of hydrocarbon;

- Efficiency of hydrocarbon resource calculation documentation set up, due to wide usage of modern information and communication technologies;

- High professional level of key specialists of the community, at registration part as well as at contract conclusion part with Clients;

4.5. Availability of Licenses or Need for Licensing

Work on oil and gas well construction within the system of NHC “Uzbekneftgaz” is executed without presence of a license.

4.6. Degree of Readiness to Production and Sale of Product

SC “Surhon Parmalash Ishlari” is a fully operating company, with presence of all legal, human resource, material and equipment, technological and methodological components for full-fledged execution of work and services.

4.7. Need of Certification, Availability of Certificates

Not required

4.8. Need and Capability of Product/Works/Services Modernization

Opportunities for modernization of products are applicable to works and services exceptionally in parts of the revision of work contract conditions with concurrence of clients, except for such work and service contracts, conditions of which are set by the legislation.

In individual cases, the revision of work and service contract conditions demand entry of changes of earlier deposited regulating officials of typical work and service rules and services in accordance.

4.9. Terms or Delivery and Packing


4.10. Warranties and Maintenance

JSC “Surhon Parmalash Ishlari” guarantees its Clients provision of works and services in accordance with requirements of legislation and contract agreement.

Compliance of requirements of solvency, set by the government is executed through maintenance of appropriate standards under the established parameter, information of which is presented to the regulating officials every quarter.

5. Market Overview

5.1. General Overview of Works and Services Market 

Drilling organizations comprising JSC “Uzgeoburneftegaz” JSC “Surhon PI” are present in the service market of oil well drilling. One of them provides services on oil and gas well drilling in Surkhandaryo and Qashqadaryo region and the Republic of Karakalpakstan.

5.2.  Market Segmentation, Analysis of Capacity, Saturation and Dynamic of Market Segments

Further development of work and service provision in the field of geologic exploration works is connected with the increase of scale of service provision to both local and foreign companies, through penetration of new techniques and technology, expansion of service infrastructure, including expansion of number of specialists and so on, and through information-explanatory work in all regions of the country with the aim of popularization of profits from works and services.

5.3. Analysis of Competitive Surrounding

 No competition is present in the Surhandarya region.

5.4.  Marketing and Works and Services Sale Strategy

The main state of distribution of works and services is traditionally the private advertisement overview. In spite of the penetration of a web-site in JSC “Surhon Parmalash Ishlari” and other companies, the sales through new channels remain inconsiderable.

Selling of the main volume of works and services is executed through juridical entities.

Under the condition of growing competition, maintenance of strong position of JSC “Neft va Gaz Quduqlarni Sinash” in the market, and adaptation of new segments, conducting an active marketing development strategy is required. Marketing strategy of the company is thought through taking into account of expected changes in the market of services and is oriented on strengthening the company position in the service market, on increase of competitiveness in accordance with budget and tariffs, expansion of divisions, and increase of quality of provided services, filling the staff of the company with professionals and young specialists.

-      Main objectives of the marketing strategy of the company are aimed at maintenance of rentable work in constantly changing conditions, on competitiveness of the company for Client’s interest purposes, on maintenance of corporate image, and maximal satisfaction of Client demands in terms of volume, structure, and quality of services, that creates the conditions for firm professional relationship.

-      Meanwhile the company already set the aim of increasing competitiveness, which assumes strengthening of advertisement activity, creation of additional division on operational services of Clients, organization of effective control systems, penetration of new technologies and information technologies.

-      Execution of aims set is evaluated as quite real taking into account the necessary support on behalf of founders and relatively high profitability of the company.

5.5 Marketing Analysis of Strengths and Weakness of the Company    SWOT-analysis.

Competitive advantages

Competitive disadvantages

one of the largest regional base and its own departments

Medium material and technical basis in regional grass-roots units of the company

Qualified personnel in key positions in the central office and regional offices

Deficiency of the qualified professionals, High staff turnover among operating personnel

established rules of services and formed the methodological basis for most traditional types of works and services


Experience in the implementation of all kinds of works and rendered services

Lack of experience on the implementation of works and services on the international market

Wide range of services


The composition of shareholders of the company and support from them

Restrictions on operational matters related to the restructuring of the company

The high capital base, financial stability and reliability

Declining liquidity of investment company



The presence of groups of customers (clients) with long-term partnerships with the company

Late payment of work performed by customer

The widespread introduction of modern ICT in the company





A significant untapped market potential foreign enterprises

The appearance on the domestic market of foreign enterprises

Rising incomes of workers and company

Increased inflation (rising prices for services, etc.)

The growth in demand for services due to the expected intensification of lending for the purchase of vehicles

The loss of customers due to unfair competition


6. Financial plan

6.1.Assumptions Used during Building the Financial Model

Within the construction a financial model number of the following indicators and the factors were used that influence the final result: market conditions, expected demand, the estimated price of services, the agreements reached with key customers, the planned marketing activities and so on.

The following groups of indicators considered:

 - Personnel (the need for personnel, labor costs, operation mode);

- Financial (need for funding sources and conditions of investments attraction);

- Tax (tax rates and fees payable to the all levels budgets);

 - Marketing (contracts cost and the price changes forecast);

- Investment (purchased equipment, capital costs for the building construction), and others.

Operating costs related to the general economic activity of the company, including the costs of depreciation and taxes were taken into account. Operating expenses include:

 - Outsourcing expenses;

 - Overhead expenses (salaries, maintenance equipment costs and buildings and other fixed costs);

- Sales expenses related to the implementation and promotion of insurance services;

- Administrative expenses.

  Investment funds attraction sources, attracting and refund amounts and periods were taken into account.

The calculation of the operating profit of the company, before tax profit , income taxes and net income were carried out . The information about the condition of company in the corresponding period in the context of profitability and efficiency of operations, financial and property state of company were analyzed.

6.2. Company Financing Structure.

Totality of own funds and the revenues from the outside, what is at the disposal of company and designed to meet its financial commitments, financing of current expenses - is the financial resources of company. The availability of financial resources in the required amounts as well as their effective use determine the financial health of the company, its financial stability, its solvency and liquidity of the balance sheet. The main source of financing is equity. Own funds of the company formed by the internal (it is the profit remaining at the disposal of company, depreciation) and external sources (this additional capital into, and implementation of the additional issue of shares, other external sources of formation of own financial resources). Profit - is the main source of funds rapidly developing company.

It is shown in the balance sheet as the following:

1) Explicitly - as retained earnings;

 2) In a veiled form - both created at the expense of profit funds and reserves.

The amount of profit depends on many factors, among which the main is the ratio of income and expenses. Profit - is the main source of reserve capital (fund), which is intended to compensate for unexpected losses and potential losses of economic activity. The order of formation of the reserve capital is fixed in the regulations that govern the company activities, as well as its statutes.

 6.3. Results of Financial Model of Project

The planned size of the company's profits may be adjusted due to:

 - Authorized capital increase;

 - Preservation of the refinancing rate;

- The preservation and growth of payments;

The presented figures are current as of the date of submission. The probability of matching results obtained by the company projected parameters will depend on the possible increase in the authorized capital of the company, market conditions and changes in the current legislation, the Company therefore set the goal of expanding and profitability are modified. The actual development of the company will follow the planned parameters.

6.4. Analysis of Investment Attractiveness of the Project

 Recently, a policy aimed at expanding the regional network is regarded as a priority for company. Since its inception, the company is actively involved in shaping the development of the services market in the country and systematically expanding its activities. Progress indicators provide financial stability and solvency of the company at a high level. So, for the past 4 years company solvency ratio exceeds the State Inspection of the Republic of Uzbekistan in the specification of 1.5 - 2 times, and has a positive dynamics. It is certainly a guarantee of the company performance assumed obligations to customers, partners and shareholders. Also, a guarantee of obligations performance to company partners are the guarantee reserves formed from profit. Dynamic improvement in operating performance and branch offices, on the forefront of providing jobs and services. Finally, this assessment helps to expand financial opportunities and the growth of company confidence among customers. In accordance with the business plan for the planned 2015-2019gg. estimates of the profitability of the authorized capital, return on assets and earnings per share are as follows:








The authorized capital profitability






Earnings per share (sum)






6.5. Sensitivity Analysis and Scenario Analysis         

Sensitivity analysis and scenario analysis during the business planning of sensitivity analyzes, is evaluated the effect of changing the initial parameters of its final results. Equipment sensitivity analysis is to change the selected parameters within certain limits, provided that the other parameters remain unchanged. A sensitivity analysis to evaluate how the resulting indicators are set at different values ​​of the variables required for calculation. This type of analysis allows you to identify the most critical variables that may best affect the feasibility and effectiveness of the business plan.

 As a variable the following input variables were taken:

- revenue volume;


-Operational costs or their components;

-inflation level;

 -provisions specification and others.

As the resulting indicators were:

1. Efficiency indicators index of payback -Cost-effective yield -term investments

2.Annual indicators - a purely balance profit accumulated profit -saldo real money.

Absolute sensitivity analysis allowed us to determine the numerical deviation resulting indicators when changing the values ​​of the original variables. Scenario analysis of the project allowed to evaluate the impact on the business plan for the possible simultaneous change of several variables by the probability of each scenario.

7. Analysis of Key Risks

7.1. Characteristics of Key Risks

Corporate risks

 This risks category associated with the probability of deterioration in the financial condition of the Company as a result of adverse changes that may occur as a result of its activities, as well as affiliated organizations. The Company has all the possibilities of direct influence on the probability of occurrence of these adverse changes, as well as minimizes the potential negative impact on its financial condition as a result of these changes.

Risks of termination of the license the work is done without a license.

Risks associated with changes in the value of the market and the cost of services.

 This risk is generated by the results of operations of the Company, and is caused by decrease in the amount of its profits. The causes of such risk can perform: reducing the capacity of services, decline in demand for its services and reduced income company in the form of income in terms of increasing competition and a number of other similar factors. As a result of reducing the profits of the company and a corresponding deterioration in its financial condition could be a risk reduction of dividends to shareholders. These risks are assessed as moderate company.

 Risks caused by inflation, devaluation and bank interest rates

The Company's operations are subject to inflationary risks, since available funds of the Company places on the bank account.

Currency risk  These risks are evaluated by the Company insignificant.

7.2. Analysis of the Degree of Influence of Risks on Economic Efficiency for Various Project Participants and Options of Minimization of these Risks

An analysis of the degree of influence on the economic efficiency of risk for different participants of the project and options to minimize these risks and reduce the impact of the above risks now developed tactical decisions to exclude the occurrence of risk situations. The decision to deny the specific risks can be taken, both at the stage of preparation of the solution, and by refraining from activities in which the company already participates, if the actual risk of higher than expected. Also, to minimize the risks of focusing on the following methods: 1. Adoption

7.2. An analysis of the degree of influence on the economic efficiency of risk for different participants of the project and options to minimize these risks to minimize and reduce the impact of the above risks now developed tactical decisions to exclude the occurrence of risk situations. The decision to deny the specific risks can be taken, both at the stage of preparation of the solution, and by refraining from activities in which the company already participates, if the actual risk of higher than expected. Also, to minimize the risks of focusing on the following methods:

1. Adoption of the risk - management decision to accept some (existing or planned) level of risk, without taking measures to reduce it, usually for technical or cost reasons. In case the risk of the need to take into account possible losses - the loss of a permanent nature, which can be easily foreseen; - Losses caused by the single, static risk. Typically, these risks are associated with substantial losses. The peculiarity of the fact that they do not lend themselves to statistical evaluation. 2. Reduction potential losses that are achieved on the one hand, by losses of prediction accuracy, on the other hand, by a more complete use of the available knowledge in the field.

7.3. Conclusions and Recommendations

 Taking into account the positive prospects of the company, the main advantages for strategic investors of the company are: -Availability state share in the authorized capital transferred to JSC "Uzgeoburneftgaz" -Availability corporate governance system ensures the greatest transparency in company and to adequately assess the risks; -Historical Established customer base of the company; -Financial Stability and solvency of the company guaranteed by the mandatory requirements of the regulatory body confirmed the presence of high ranking and being in the official stock exchange listing in the highest category of issuers; -High Liquidity of the shares, which creates an opportunity for shareholders to dispose of them freely in and out of the company as they wish;

-Reliable Reputation and formed the image of the company among customers.






8. Attachments

Contact information

Legal address:  Uzbekistan, Surkhandarya region, Kumkurgan city,

postcode 190900, Navoi street, 8

Postal address: Uzbekistan, Surkhandarya region, Kumkurgan city,

postcode 190900, Navoi street, 8

Phone: 0376 465-12-42    

Fax: 0376 465-24-87

Web-site: www.surxonpi.uz

E-mail: info@surxonpi.uz