Petronas Investment in Uzbekistan

Excerpts from http://thestar.com.my/news/story.asp?file=/2008/11/16/nation/2564337&sec=nation

"Prime Minister Datuk Seri Abdullah Ahmad Badawi, who begins a three-day official visit to Uzbekistan today, is expected to announce new investments of up to RM700mil by Petronas in the republic’s oil and gas sector"

"Malaysia made several investments in post-independent Uzbekis­tan, particularly in the banking, hotel, mobile services and the distribution of oil and fuel industries. However, almost all the investments failed, owing mainly to the Asian regional economic crisis in 1998."

...

They never learn, do they?

Make investements just before an economic crisis hits. Watch investments fail. Repeat every couple of years?

Anyhow, a mere RM700m is nothing to Petronas. After all, we're talking about lunatics who spent RM128 billion in 2008 alone!

hmm: extra food for thought: http://en.wikipedia.org/wiki/Economy_of_Uzbekistan

"According to EBRD transition indicators,[13] Uzbekistan's investment climate remains among the least favorable in the CIS, with only Belarus and Turkmenistan ranking lower. The unfavorable investment climate has caused foreign investment inflows to dwindle to a trickle. It is believed that Uzbekistan has the lowest level of FDI per capita in the CIS. Since Uzbekistan's independence, U.S. firms have invested roughly $500 million in the country, but due to declining investor confidence, harassment, and currency convertibility problems, numerous international investors have left the country or are considering leaving"

...

You know what? Don't blame the Asian Economic Crisis for investments in Uzbekistan... it's a lousy economy there.