Uzbekistan Eyes New Oil Refinery Project in Partnership with SOCAR

Uzbek Minister of Energy Jurabek Mirzamahmudov has said that Uzbekistan is considering the construction of a new oil refinery in the Ustyurt region, contingent on the confirmation of commercially viable oil reserves under its exploration agreement with the State Oil Company of the Azerbaijan Republic (SOCAR).

“Experts, particularly those from SOCAR, are forecasting promising oil indicators. If these projections are confirmed, we will move forward with plans to build a refinery in parallel with exploration,” Mirzamahmudov noted, The Caspian Post reports via local media.

He explained that an operating company has already been established to implement the Production Sharing Agreement (PSA) signed with SOCAR in mid-2025. The deal covers geological exploration and potential extraction in the Ustyurt investment blocks.

“This is one of the most promising areas in the region, where gas has traditionally been produced. After reviewing all available data, SOCAR expressed strong interest in exploring potential oil reserves. The operator has already begun the necessary contractual procedures,” the minister said.

Mirzamahmudov said that seismic exploration is expected to begin before the end of this year.

“We have an ambitious goal - to accelerate the start of operations. By year’s end, we plan to commence seismic surveys covering more than 3,000 linear kilometers. Based on the results, the first exploratory well will be drilled,” he added.

The minister outlined that the first three years of the PSA will focus on seismic studies, drilling, and initial exploration results. Depending on infrastructure readiness, the first phase of production could start within three to five years.

“Drilling hasn’t been carried out directly in these blocks, but exploration has taken place nearby. SOCAR decided to join the project after reviewing the historical geological data we provided. Technology has advanced significantly - while major discoveries weren’t expected in the 1970s, modern interpretation methods reveal high potential. These findings have also been validated by other analytical companies,” Mirzamahmudov emphasized.