Azerbaijan, Uzbekistan unveil new energy sector project

Azerbaijan’s Minister of Energy, Parviz Shahbazov, took part in a ceremony dedicated to the implementation of new projects in the energy sector, held in Tashkent with the participation of the President of the Republic of Uzbekistan, Shavkat Mirziyoyev.

He wrote on X that, in this context, the exploration and project in the Ustyurt region carried out jointly with SOCAR and Uzbekneftegaz has been officially launched, Caliber.Az reports.

🇺🇿 We attended a ceremony in Tashkent with the participation of the President of the Republic of #Uzbekistan Mr. Shavkat Mirziyoyev dedicated to the start of the commissioning and construction of new projects in the #energy sector. In this context, the #exploration and project… pic.twitter.com/5Fn3D4Xs2w

— Parviz Shahbazov (@ParvizShahbazov) December 5, 2025

The Ustyurt Operating Company was inaugurated in Tashkent on December 4, 2025, formalising the entity that will carry out exploration work under the project.

On July 24, 2025, Uzbekistan’s Ministry of Energy, SOCAR, and Uzbekneftegaz finalized a Production Sharing Agreement (PSA) for hydrocarbon exploration and production in the Ustyurt region.

The PSA covers six investment blocks—Boyterak, Terengkuduk, Birgori, Kharoy, Karakalpok, and Kulboy—with SOCAR designated as operator during the geological exploration phase.

The plan for the initial five years includes prospecting, exploration, drilling at least one exploratory well, and conducting 3D seismic surveys across a minimum of 1,000 square kilometres.

Estimates suggest the Ustyurt blocks may hold around 100 million tons of oil and 35 billion cubic metres of natural gas, with potential annual oil output reaching five million tons once fully operational. The total investment for the project is projected at $2 billion.

By Jeyhun Aghazada