Uzbekistan negotiating to involve BP in Ustyurt PSA being implemented with SOCAR

Uzbekistan is negotiating to bring BP into the Production Sharing Agreement (PSA) for the Ustyurt region, Uzbek 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.

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.

The distribution of shares is standard - 50/50: 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.

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 noted.

Full interview is available here