Uztransgaz chief criticizes Gazli production decline, targets Condor Energies

During a company review, management examined the natural decline in extraction rates across several fields, which field supervisors attributed to dropping reservoir and wellhead pressures. However, corporate leadership expressed intense dissatisfaction with more than 10 emergency stoppages recorded since the beginning of the year. Sanginov ordered immediate technical interventions to eliminate these operational failures and moved away from passive management, demanding that teams adopt modern technological approaches and proactive solutions.

 The critical assessment led to immediate administrative penalties. The head of the Doyaxotin gas field, which has been in service since 2004, was dismissed from his post for failing to counteract the falling output. Additionally, the director and chief geologist of the Gazli division received formal reprimands.

 To reverse the decline, the state firm is executing a targeted technical program. Management reviewed the operational status of 461 wells under the department's oversight, discovering that 45% require immediate maintenance or rehabilitation. Under updated production plans for 2026, the company intends to drill nine new wells and overhaul 27 existing ones to generate an extra 1.4 million cubic meters of gas per day.

 Work completed between January and May has already brought five new wells online and repaired 15 others, adding 908,000 cubic meters to daily production. Officials have also ordered the immediate repair of 10 more wells before the end of the year to secure an additional 250,000 cubic meters daily.

 The meeting also reviewed a key strategy shift finalized in January, where Uztransgaz decided against transferring 21 local fields to third-party operators. Instead, the company opted to develop these assets using internal technical resources. Drilling operations were planned across nine specific sites under this framework, five of which have already been successfully commissioned.

 The Gazli division remains a cornerstone of domestic energy supply. Historically handling around 10% of the state firm's gas processing needs with an annual design capacity of 7.69 billion cubic meters, its share in collective gas extraction rose to 14.3% in 2024. This makes it the third-largest processing arm behind the Mubarek division at 43.4% and the Shurtan division at 27.8%.

 Beyond internal operations, leadership directed sharp criticism toward Canadian investor Condor Energies. Operating under a 2024 risk-service contract valued at $480 million, the firm was tasked with boosting recovery rates across eight mature gas condensate fields in Qorakol district of Bukhara region. Although the fields suffered from low flow rates, the investor has reportedly failed to deliver on its project targets, prompting Sanginov to place their operations under strict administrative supervision.

 The Canadian firm, which had previously announced ambitions to invest over $1 billion in the region's gas infrastructure, is structured to receive a percentage of net profits in exchange for its technical services. Over the wider 2023–2043 project horizon, the risk-service framework was projected to draw $582 million in foreign direct investment and loans to extract an additional 11.3 billion cubic meters of natural gas.

 The administrative pressure comes amidst a notable contraction in national energy output. Statistics Agency data shows that Uzbekistan extracted 9.6 billion cubic meters of natural gas between January and March, representing a 15% drop compared to the 11.3 billion cubic meters recorded during the same period in 2025.

 The monthly output for March fell to 2.7 billion cubic meters – a 30.8% decrease compared to March 2025. Commenting on the data, Energy Minister Jurabek Mirzamahmudov noted that the contraction was anticipated, stating that the ministry's immediate priority is stabilizing ongoing production and maintaining existing reserves. Uztransgaz closed the previous year with 25.2 billion cubic meters of gas produced, missing its original benchmarks, and is currently anchoring its 2026–2027 strategy around resource stabilization and enhanced processing efficiency.