Seismic surveys underway as Ustyurt project moves toward multibillion-dollar development

“For the first three years, the plan includes seismic exploration, drilling and obtaining early results. Taking into account the construction of the necessary infrastructure, it will take three to five years to reach first production,” Mirzamakhmudov stated.

The minister noted that although exploration activities were conducted in neighboring territories in the past, the specific areas allocated for the current project have never been drilled. Azerbaijan’s state oil company SOCAR decided to participate after analyzing historical geological data, he said. While significant discoveries were not expected in the late 20th century, modern technologies have revealed substantial subsoil potential – a conclusion supported by both research findings and assessments from independent analytical firms.

Mirzamakhmudov declined to disclose the estimated reserves at Ustyurt, explaining that such figures fall under the commercial terms of the production-sharing agreement (PSA) between SOCAR and Uzbekneftegaz. However, he confirmed that SOCAR specialists forecast “strong oil indicators.”

“If these projections are confirmed, we will simultaneously begin preparations for building an oil refinery,” he added.

Cooperation expanding beyond upstream projects

Uzbekistan and Azerbaijan are also discussing small-scale chemical production projects that could be implemented in special industrial economic zones in Bukhara, Karakalpakstan and Khorezm, where infrastructure and logistics conditions are favorable.

The minister stressed that the two countries are not considering establishing a joint venture for exporting petrochemicals or hydrocarbons to third countries. “For now, Uzbekistan is focused on expanding its own production,” Mirzamakhmudov said.

Uzbekistan has also held preliminary discussions with BP regarding possible participation in a PSA for the Ustyurt region.