SOCAR and Uzbekneftegaz to finalize operator company registration in September

The State Oil Company of Azerbaijan (SOCAR) and Uzbekistan's state-owned Uzbekneftegaz plan to complete the registration of a joint operating company by September to begin geological exploration on investment blocks in Uzbekistan's Ustyurt region, Report informs, citing Uzbekneftegaz.

According to a statement, the leadership of both companies recently held a video conference to review the implementation of the Production Sharing Agreement (PSA), which was approved by a presidential decree in Uzbekistan. The meeting focused on accelerating the start of exploration activities on the Ustyurt investment blocks.

Technical aspects of the project and the creation of the operating company were also discussed.

"As a result of the meeting, an agreement was reached to complete the registration of the operator company in September, set new timelines for seismic exploration, and initiate the project's environmental assessment procedures," the statement reads.

The PSA was signed on July 24, 2025, between Uzbekistan's Ministry of Energy, SOCAR, and Uzbekneftegaz. It covers geological exploration and future hydrocarbon production in the Ustyurt region.

The agreement includes exploration, development, and extraction at six blocks-Bojterak, Terengkuduk, Birgori, Kharoy, Karakalpak, and Kulboy. SOCAR will act as the operator during the exploration phase. Under the terms, at least one exploratory well will be drilled during the initial five-year period, and 3D seismic surveys will cover a minimum of 1,000 square kilometers.

Preliminary estimates suggest that the Ustyurt blocks could hold up to 100 million tonnes of oil and 35 billion cubic meters of natural gas. Once operational, the project could enable annual production of 5 million tonnes of oil. Total investments are expected to reach $2 billion.

Uzbekneftegaz Chairman Bakhodirjon Sidikov previously told Report that exploration activities are scheduled to begin in the first quarter of 2026.