SOCAR–Uzbekneftegaz project could fully replace Uzbekistan’s petroleum imports

The Uzbekneftegaz oil and gas system is implementing several projects totaling more than $10 billion. This was announced on 5 December by the company’s chairman of the management board, Bakhodir Sidikov, in an interview with the Uzbekistan 24 TV channel during the launch ceremony for new energy facilities in Uzbekistan.

He said one of the key areas of focus is the joint project with Azerbaijan’s state oil company SOCAR to explore and extract mineral resources in the Ustyurt region of Karakalpakstan.

“As part of the first stage, we are launching fieldwork, including seismic surveys. Practical steps are being accelerated in line with the instructions of the presidents of Uzbekistan and Azerbaijan. We have high expectations for this project. Three scenarios have been evaluated, and even under the minimum scenario, it will help us stop importing petroleum products,” Sidikov noted.

Azerbaijan’s Minister of Energy Parviz Shahbazov confirmed that “very extensive seismic work” will begin in the Ustyurt region as part of exploration and future hydrocarbon production.

In early December, the office of the joint venture Ustyurt Operating Company opened in Tashkent. The company will conduct geological exploration and production under a production sharing agreement (PSA) signed in July by SOCAR, Uzbekistan’s Ministry of Energy and Uzbekneftegaz. The document covers the Boyterak, Terengquduq, Birgory, Kharoy, Karakalpak and Kulboy investment blocks.

Under the PSA, exploration and prospecting work, along with drilling at least one exploration well, is expected to be completed within five years. During this period, SOCAR will serve as operator.

According to Uzbekistan 24, the country imports up to 2 million tonnes of crude oil and petroleum products annually, most of which come from Russia. In 2024, imports reached $1.97 billion – a 22.2 percent increase compared to 2023.

According to the Customs Committee, imports amounted to $1.42 billion in the first 11 months of this year (+6 percent compared to January–November 2024). Of this volume, diesel accounted for $500 million (+70 percent), while gasoline imports reached $441.7 million (+14.3 percent).