Uzbekneftegaz, SOCAR complete operator registration process for project in Uzbekistan

The State Oil Company of Azerbaijan (SOCAR) and the Uzbek state company “Uzbekneftegaz” plan to complete the registration of an operating company in September to carry out geological exploration work on the investment blocks of Uzbekistan’s Ustyurt region.

“The heads of Uzbekneftegaz and SOCAR held negotiations via videoconference. During the meeting, they discussed the implementation of the Production Sharing Agreement (PSA) approved by the decree of the President of Uzbekistan, as well as measures to accelerate and start geological exploration work on the investment blocks of the Ustyurt region,” Uzbekneftegaz said in a statement, Caliber.Az reports via local media.

The parties discussed technical issues related to the project’s implementation, as well as matters concerning the establishment of an operating company for the project.

“As a result of the negotiations, an agreement was reached to complete the registration of the operating company in September, set new timelines for seismic exploration, and start the project’s environmental assessment procedures,” the information said.

On July 24, 2025, Uzbekistan's Ministry of Energy, SOCAR, and Uzbekneftegaz signed a Production Sharing Agreement providing for geological exploration and subsequent hydrocarbon production in the Ustyurt region.

The PSA covers exploration, development, and production across six Ustyurt investment blocks – Boyterak, Terengkuduk, Birgori, Kharoy, Karakalpak, and Kulboy. SOCAR will act as the operator during the geological exploration stage. According to the agreement, exploratory work and the drilling of at least one exploratory well are planned during the initial five-year period. A 3D seismic survey is planned to cover an area of at least 1,000 sq. km.

According to forecasts, the Ustyurt blocks may contain an oil field with reserves of 100 million tons and natural gas of 35 billion cubic meters. Once the project is launched on the Ustyurt plateau, it is expected to enable annual oil production of 5 million tons. Total project investments are estimated at $2 billion.

The Chairman of the Board of Uzbekneftegaz, Bahodirjon Sidikov, previously told Report that geological exploration work on the investment blocks of the Ustyurt region is planned to begin in the first quarter of 2026.

By Khagan Isayev