Uzbekistan signs $2 billion energy deal with SOCAR for giant Ustyurt oil field

Uzbekistan plans to discover a major oil field with an estimated 100 million tons of reserves in the Ustyurt oil and gas region, in partnership with Azerbaijan’s state oil company, SOCAR. Once the project becomes operational, it could produce 5 million tons of oil annually – 2.5 times more than Uzbekistan’s current total oil imports.

On 24 July, the Ministry of Energy, Uzbekneftegaz, and SOCAR signed a production-sharing agreement. Under the deal, geological exploration will be carried out in the Ustyurt region, followed by the extraction of hydrocarbons if viable reserves are confirmed.

According to a video report by Uzbekistan 24, the agreement is valued at approximately $2 billion. Initial projections suggest that the Ustyurt region could hold 100 million tons of oil and 35 billion cubic meters of natural gas – a potential “giant” deposit.

Once the project is launched, annual oil production could reach 5 million tons, which is 2.5 times more than the current import volume of around 2 million tons.

The project is expected to meet Uzbekistan’s oil demand for the next 25 years.

Earlier, it was reported that Azerbaijan’s SOCAR was entering Uzbekistan’s energy market.