Azerbaijan, Uzbekistan ink major oil and gas deal for Ustyurt region

The Ministry of Energy of Uzbekistan, the State Oil Company of the Azerbaijan Republic (SOCAR), and Uzbekneftegaz JSC have signed a production sharing agreement (PSA) for geological exploration and future hydrocarbon production within investment blocks of the Ustyurt oil and gas region.

According to a press release from Uzbekistan’s Ministry of Energy, cited by Caliber.Az, at least 1,000 square kilometres will undergo 3D seismic exploration, after which geological exploration will begin on one well. Should hydrocarbon deposits of industrial significance be discovered, the parties will move forward with their development and production.

The agency highlighted that this agreement marks a significant step in enhancing the energy partnership between Uzbekistan and Azerbaijan, establishing a firm foundation for long-term cooperation in exploring and developing hydrocarbon resources.

SOCAR President Rovshan Najaf stated, “The signing of this agreement demonstrates our long-term strategy for advancing the energy sector in Central Asia and the Caspian region. SOCAR is eager to launch the project, leveraging its extensive experience and advanced technological solutions. We are confident that this partnership will substantially contribute to Uzbekistan’s energy security and infrastructure development.”

Uzbekistan’s Minister of Energy, Jurabek Mirzamahmudov, added, “Our partnership with SOCAR reflects New Uzbekistan’s strategic commitment to diversifying investment sources and adopting international best practices. The Ustyurt region holds significant potential, and this PSA opens new opportunities for its efficient development. We believe this project will be a key driver of technological progress and economic growth.”

Bahodirjon Sidikov, Chairman of Uzbekneftegaz JSC, noted, “This agreement represents an important milestone in deepening industry cooperation and advancing the national oil and gas sector. It reinforces Uzbekneftegaz’s position as a reliable, innovation-driven partner open to international collaboration and major investments.”

Previously, on August 22, 2024, Uzbekneftegaz and SOCAR signed an agreement to broaden and deepen cooperation in the oil and gas sector. At a business forum that same month, Laziz Kudratov, Uzbekistan’s Minister of Investment, Industry, and Trade, announced plans for geological exploration on the Ustyurt Plateau in partnership with SOCAR.

In June 2025, SOCAR confirmed it had reached an agreement with Uzbekneftegaz JSC to conduct geological exploration in Uzbekistan’s Ustyurt region.

By Tamilla Hasanova