Uzbekneftegaz has ongoing projects worth over $10 billion. This was announced by the company chairman Bakhodirjon Sidikov told the Uzbekistan 24 TV channel Friday during the launch ceremony of new energy facilities in Uzbekistan.
According to him, one of the key areas is the implementation of a project with the Azerbaijani SOCAR to explore and produce minerals in the Ustyurt area of Karakalpakstan.
As part of the phase I, we are now commencing seismic exploration. We have pretty high expectations for this project. Three scenarios have been played out, and even the worst-case scenario to help us no longer need to import oil products, he underscored.
Azerbaijani Energy Minister Parviz Shahbazov confirmed that very serious seismic work and future oil production will begin in the Ustyurt.
In early December, the office of the Ustyurt Operating Company, a Uzbek-Azerbaijani joint venture, opened in Tashkent. It will conduct geological exploration and production under the production sharing agreement (PSA) signed in July between SOCAR, the Ministry of Energy of Uzbekistan, and Uzbekneftegaz. The agreement covers the Boyterak, Terengkuduk, Birgori, Haroy, Karakalpak, and Kulboy investment blocks.
According to the PSA, exploration and prospecting, as well as drilling of at least one exploratory well, are planned to be completed within five years. During this period, SOCAR will act as the operator.
Uzbekistan imports up to 2 million tons of oil and oil products annually, with most coming from Russia. In 2024, imports of oil and oil products valued at $1.97 billion, which is by 22.2% more than in 2023.
