Uzbekneftegaz invites third parties to participate in PSA with SOCAR in Uzbekistan

Uzbekneftegaz JSC is inviting third-party partners to participate in the Production Sharing Agreement signed in the summer of 2025 with the State Oil Company of the Azerbaijan Republic (SOCAR) for geological exploration and subsequent production in the Ustyurt region, Uzbekneftegaz Chairman of the Board Bakhodirjon Sidikov said at the 16th Kazenergy Eurasian Forum "A New Energy Order: Focus on Middle Powers," Report informs.

"As you know, we recently announced the start of cooperation with SOCAR. We also invite third-party partners to participate in this collaboration, and this will become part of our agreement," he noted.

He noted that Uzbekistan has been experiencing a long-term decline in natural gas production. However, with modern technology, qualified specialists, and reliable partners, there is an opportunity to improve the situation this year.

"First and foremost, we're talking about new geological exploration and investment, using cutting-edge technologies and experienced partners. We've already seen some positive developments since this year: new fields have been discovered on the Ustyurt Plateau," he said.

Sidikov also added that it was on the Ustyurt Plateau that, for the first time in several years, a 5,000-meter-deep well was drilled in Uzbekistan.

"We're currently drilling deep wells. A depth of 6,500 meters is a significant technological challenge. For comparison, the average well depth in Uzbekistan was previously around 3,000 meters. We're exploring more interesting, but more complex, fields, so we plan to drill deeper. For example, the current well depth on the Ustyurt Plateau is around 5,000 meters. And this already presents a challenge. If two years ago I'd said we could drill 5,000 meters, and it would take us about a year, about 300 days, now, using the right technologies, modern equipment, and thanks to collaboration with experienced partners, we can do it in two months. This is a fundamentally new approach and a completely new outlook. We can begin production at new fields significantly faster than before-and this is a major, positive achievement," the chairman of the Board noted.

On July 24, 2025, the Ministry of Energy of Uzbekistan, SOCAR, and Uzbekneftegaz signed a Production Sharing Agreement (PSA) covering exploration and subsequent hydrocarbon production in the Ustyurt region.

The PSA covers exploration, development, and production at six Ustyurt investment blocks: Boyterak, Terengkuduk, Birgori, Haroy, Karakalpok, and Kulboy. SOCAR will act as operator during the exploration phase. According to the document, exploration work and the drilling of at least one exploratory well are planned over an initial five-year period. Under the terms of the agreement, 3D seismic surveys are planned to cover an area of ​​at least 1,000 square kilometers.

According to forecasts, the Ustyurt blocks could yield a field with reserves of 100 million tons of oil and 35 billion cubic meters of natural gas. Once the project is launched, the Ustyurt Plateau is expected to produce 5 million tons of oil annually. Total investment in the project is estimated at $2 billion.

Bakhodirjon Sidikov, chairman of the Board of JSC Uzbekneftegaz, previously told Report that geological exploration work at investment blocks in Uzbekistan's Ustyurt region is planned to begin in the first quarter of 2026.