Uzbekistan plans to end oil product imports through project with SOCAR

Uzbekistan plans to phase out oil product imports within the framework of a joint project with the State Oil Company of Azerbaijan (SOCAR), Chairman of the Board of Uzbekneftegaz, Bahodirjon Sidikov, stated this in an interview with a local TV, Report informs.

He explained that the project with SOCAR is being carried out in the Ustyurt region of Karakalpakstan and covers exploration and extraction: "In the first stage, we are beginning fieldwork, with seismic exploration already underway. In line with the directives of the presidents of Uzbekistan and Azerbaijan, practical steps are being accelerated. We have high hopes for this project. Even under a minimal scenario, it will help us abandon oil product imports."

Azerbaijan's Minister of Energy, Parviz Shahbazov, confirmed that extensive seismic work has begun in the Ustyurt region for hydrocarbon exploration and future production.

On July 24, 2025, Uzbekistan's Ministry of Energy, SOCAR, and Uzbekneftegaz signed a production-sharing agreement for geological exploration and subsequent hydrocarbon extraction in investment blocks of the Ustyurt oil and gas region (Boyterak, Terengquduq, Birqori, Kharoy, Qoraqalpoq, and Qulboy).

In addition, at the beginning of December, the office of the joint venture Ustyurt Operating Company, which will carry out geological exploration and hydrocarbon production, was opened in Tashkent. SOCAR will act as the operator during the exploration phase.

Under the terms of the agreement, 3D seismic surveys will be conducted over at least 1,000 square kilometers, followed by geological exploration drilling in one well based on the results.

Forecasts suggest that deposits in the Ustyurt blocks may contain 100 million tons of oil and 35 billion cubic meters of natural gas. Once launched, the project is expected to enable annual production of 5 million tons of oil in the Ustyurt plateau. The total investment in the project is estimated at $2 billion.

Bahodirjon Sidikov had earlier said in an interview with Report that geological exploration in the investment blocks of Uzbekistan"s Ustyurt region is planned to begin in the first quarter of 2026.