Uzbekistan’s Uzbekneftegaz Seeks Partners to Boost Ustyurt Oil and Gas Project with SOCAR

Uzbekistan’s state energy company Uzbekneftegaz is inviting third-party partners to join its landmark Production Sharing Agreement (PSA) with the State Oil Company of the Azerbaijan Republic (SOCAR), aimed at accelerating oil and gas exploration and production in the country’s resource-rich Ustyurt region.

The announcement was made by Uzbekneftegaz Chairman Bakhodirjon Sidikov during the 16th Eurasian KazEnergy Forum, held under the theme “New Energy Order: Focus on Middle Powers.” The forum brought together policymakers and energy leaders from across the region, The Caspian Post informs via local media.

“As you know, we recently began cooperation with SOCAR. We are now inviting third partners to this collaboration, and that will become part of our agreement,” Sidikov said.

He pointed to a prolonged decline in Uzbekistan’s natural gas output but expressed optimism about reversing the trend, citing recent technological breakthroughs and deeper cooperation with international partners.

“For the first time in years, we’ve drilled a 5,000-meter well on the Ustyurt plateau,” Sidikov noted. “Drilling to depths of 6,500 meters is now within reach. What used to take 300 days can now be achieved in just two months thanks to modern equipment and experienced partners.”

Sidikov described this as a “fundamental shift” that allows Uzbekistan to begin production much faster than before, unlocking new economic and strategic opportunities.

Signed on July 24, 2025, the PSA brings together Uzbekistan’s Ministry of Energy, SOCAR, and Uzbekneftegaz for joint development of six investment blocks in the Ustyurt region: Boyterak, Terengkuduk, Birgori, Kharoy, Karakalpak, and Kulboy. SOCAR will serve as operator during the exploration phase, which includes 3D seismic surveys across at least 1,000 square kilometers and the drilling of at least one exploratory well in the initial five-year period.

Early geological assessments suggest the region may contain up to 100 million tons of crude oil and 35 billion cubic meters of natural gas. Once operational, the Ustyurt project could produce up to 5 million tons of oil annually. The total investment is estimated at $2 billion.

Sidikov confirmed that exploration activities are expected to begin in Q1 2026.