Uzbekneftegaz and SOCAR, the state oil and gas company of Azerbaijan, have signed a cooperation agreement, the press service of SOCAR reported.

As part of the Uzbek-Azerbaijani business forum, the parties signed an agreement on the participation of Uzbekneftegaz in oil and gas projects in Azerbaijan, as well as a cooperation agreement between SOCAR, the Ministry of Mining and Geology and Uzbekneftegaz on the participation of SOCAR in oil and gas projects in Uzbekistan.

As reported earlier, Uzbekneftegaz together with SOCAR sought to start developing three oil and gas fields in Azerbaijan in 2024.

While, SOCAR is expected to participate in exploration in Uzbekistan, as well as the provision of services by the company. Uzbekneftegaz and SOCAR plan to launch a joint venture SOCAR Trading.

Following the meeting between SOCAR President Rovshan Najaf and Uzbekneftegaz chief Bakhodirjon Sidikov, the parties also signed a Memorandum of Intent on trade and logistics of oil, petrochemical, gas chemical and other oil products.

In October 2019, it was reported about the plans of Uzbekneftegaz and SOCAR to jointly produce oil in the Azerbaijani part of the Caspian Sea.

In March of this year, the President Shavkat Mirziyoyev, during his visit to Azerbaijan, said that Uzbekistan was preparing a "big project in the oil and gas industry" with SOCAR. Previously, Uzbekneftegaz did not carry out projects outside of Uzbekistan. In January 2018, President Shavkat Mirziyoyev instructed the company to intensify work on entering international markets.

Due to the depletion of reserves and process losses, gas production in Uzbekistan has continued to fall in recent years. According to the results of 2022, natural gas production in the republic decreased by 4% compared to 2021, to 51.665 billion cubic meters, and oil increased by 1.8%, to 787.8 thousand tons.