Uzbekistan is discussing involving the British Petroleum (BP) in a production sharing agreement (PSA) for the Ustyurt area, the Ministry of Energy said.
The company has confirmed its interest, with preliminary negotiations now underway.
The investors in the project are Uzbekneftegaz and Azerbaijan's SOCAR, which participate in the PSA on a 50/50 basis with the government, the Ministry of Energy added.
The investors themselves will provide funding for geological exploration and further development work.
BP and SOCAR have historically enjoyed a good relationship. According to BP, the company and its partners have invested more than $87 billion in oil and gas exploration, development, and transportation projects in Azerbaijan since the 1990s. Their collaboration encompasses major projects in the Caspian region, including the Azeri-Chirag-Guneshli oil field, the Shah Deniz gas field, and the Southern Gas Corridor, as well as joint initiatives in petrochemicals, trading, and logistics.
About the project
SOCAR and BP had previously expressed interest in the Ustyurt area of Karakalpakstan. In May 2018, Uzbekneftegaz, SOCAR, and BP Exploration (Caspian Sea) signed a memorandum inviting the companies to consider a joint geological survey of the Aralomor, Sam-Kosbulak, and Baiterek investment blocks of the Ustyurt Plateau.
In 2021, BP exited the development of oil and gas fields in the Ustyurt Plateau. The British company's withdrawal from the project was cited as a change in strategy—embracing a "green" path and abandoning new hydrocarbon investments. However, the British company is reconsidering its strategy again: abandoning plans to reduce oil and gas production by 2030, focusing on hydrocarbons to increase investor returns.
