Official: Uzbekistan in talks to bring bp into Ustyurt region energy project

Uzbekistan is in negotiations to include bp in the Production Sharing Agreement (PSA) for the Ustyurt region, Energy Minister Jurabek Mirzamahmudov said in an exclusive interview with Report.

"This is one of the most promising areas in the region, where previously mainly gas was extracted. After studying all available materials, SOCAR expressed interest in exploring oil reserves. An operator has already been created under the signed PSA. Now the operator has begun conducting all necessary contractual negotiations," Mirzamahmudov said.

He added that the government aims to accelerate project development.

"We face an ambitious task - to accelerate the start of work. We plan to begin physical seismic exploration work covering more than 3,000 linear kilometers by the end of this year. Based on the results of this work, we plan to drill the first well."

According to the minister, the PSA provides for a 50/50 share distribution between the state and investors.

"The investors are SOCAR and Uzbekneftegaz. BP has shown interest in the project, and preliminary negotiations are underway. All commercial conditions - product sharing, taxation, etc. - are spelled out in the agreement," he said.

Mirzamahmudov noted that project financing would come from the investor consortium.

"As in most PSAs, financing is provided by the consortium of investors - SOCAR and Uzbekneftegaz. Also, as I already mentioned, BP's participation is being considered, with whom SOCAR has historically established good relations," he added.

The Ustyurt region, located in western Uzbekistan, has long been known for its gas production potential. .

By Sabina Mammadli