Azerbaijan’s SOCAR strengthens position in Uzbekistan’s energy sector

Azerbaijan’s state oil company SOCAR is expanding its role in Uzbekistan as the two countries seek to deepen trade, investment and industrial cooperation, with a major hydrocarbon project in the Ustyurt region at the centre of their energy partnership.

Uzbekistan’s Minister of Investment, Industry and Trade Laziz Kudratov and SOCAR President Rovshan Najaf discussed new cooperation initiatives, including the implementation of existing joint projects and the development of further projects in the energy and industrial sectors, Uzbekistan’s Ministry of Investment, Industry and Trade said, according to Report.

The two sides reaffirmed their readiness to deepen cooperation, increase bilateral trade and accelerate strategic projects.

SOCAR is participating in a project to develop hydrocarbon resources in Ustyurt with an investment of about $2 billion, according to the ministry.

The project is based on a production-sharing agreement signed on July 24, 2025, by Uzbekistan’s Ministry of Energy, SOCAR and Uzbekneftegaz. The agreement provides for geological exploration and the subsequent development and production of hydrocarbons in the Ustyurt region.

The PSA covers six investment blocks — Boiterak, Terengkuduk, Birgori, Haroy, Karakalpok and Kulboy — and SOCAR will serve as operator during the geological exploration phase.

The initial five-year programme includes exploration and appraisal work and the drilling of at least one exploration well. The agreement also calls for 3D seismic surveys covering at least 1,000 square kilometres.

The Ustyurt blocks are forecast to contain a potential field with estimated reserves of 100 million tonnes of oil and 35 billion cubic metres of natural gas.

Once the project is launched, production capacity on the Ustyurt Plateau could reach 5 million tonnes of oil annually.

The project marks a significant expansion of SOCAR’s involvement in Uzbekistan’s upstream sector and forms part of broader efforts by the two countries to strengthen their economic and investment ties.

By Tamilla Hasanova