Billions of dollars, tons of oil: SOCAR enters Uzbekistan’s energy market

Uzbekistan and Azerbaijan have signed a landmark production sharing agreement aimed at significantly boosting oil and gas production in Uzbekistan’s Ustyurt region.

The agreement was concluded on July 24 between Uzbekistan’s Ministry of Energy, JSC "Uzbekneftegaz," and the State Oil Company of Azerbaijan Republic (SOCAR), marking a major step in energy cooperation between the two countries, Caliber.Az reports via Uzbek media.

According to a report by the “Uzbekistan 24” TV channel, the project is valued at approximately $2 billion. It envisions geological exploration in the Ustyurt oil and gas region, with subsequent development and production of hydrocarbons.

Preliminary forecasts suggest the potential discovery of a major field, with estimated reserves of 100 million tons of oil and 35 billion cubic meters of natural gas.

Once operational, the project could yield up to 5 million tons of oil annually—2.5 times more than Uzbekistan’s current oil imports, which stand at 2 million tons. Officials stress that the project will help ensure the country’s energy security, potentially covering domestic oil needs for the next 25 years.

This development follows earlier reports confirming SOCAR’s entry into the Uzbek energy market, signaling a deepening partnership in the oil and gas sector between Baku and Tashkent.

By Sabina Mammadli