Oil and Gas Production on the Ustyurt Plateau Expected to Start in 3–5 Years — Energy Minister

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan’s Minister of Energy, Jurabek Mirzamahmudov, announced that oil and gas production on the Ustyurt Plateau could begin within the next three to five years.

In an interview with Report.az, he explained that the first three years of the project will focus on seismic exploration, drilling, and obtaining initial results, while the launch of full-scale industrial production will require additional time to construct the necessary infrastructure.

According to the minister, the areas covered by the agreement have not been previously drilled, although research has been conducted on adjacent territories. Mirzamahmudov noted that SOCAR decided to enter into partnership after analyzing historical data. While earlier assessments did not anticipate major discoveries in the region, new technologies have revealed significant hydrocarbon potential, which has been confirmed by research results and evaluations from independent analysts.

The minister did not disclose estimates of oil and gas reserves, emphasizing that this information is part of the commercial terms of the production-sharing agreement between SOCAR and Uzbekneftegaz. He added that specialists, primarily SOCAR experts, predict substantial volumes of oil. If these forecasts are confirmed, preparations for constructing a refinery will commence in parallel.

Mirzamahmudov also reported that Uzbekistan and Azerbaijan are exploring projects in the field of small-scale chemical production. The establishment of new facilities is planned for specialized industrial economic zones in Bukhara, Karakalpakstan, and Khorezm, taking into account existing infrastructure and logistics.

The minister stressed that discussions regarding the creation of a joint venture for exporting petrochemical products or hydrocarbons are not currently underway. The priority is increasing domestic hydrocarbon production.

Earlier reports indicated that Uzbekistan has held preliminary talks with the British oil and gas company BP about potentially joining the Ustyurt project under a production-sharing agreement.

The Ustyurt project has become a key focus of energy cooperation between Uzbekistan and Azerbaijan.

In August 2024, Uzbekneftegaz and SOCAR signed a cooperation agreement, after which the Azerbaijani company began geological exploration. On 24 July, the parties signed a production-sharing agreement covering seismic studies, drilling, and subsequent hydrocarbon extraction.

It is estimated that the agreement will allow Uzbekistan to fully cover its oil import needs and supply the domestic market with raw materials for the next 25 years. Gas extracted from the plateau is planned for domestic consumption, enhancing energy security, while local processing will provide the industry with affordable petroleum products.

The project will be implemented in three phases, attracting approximately $2 billion in investment. Estimated reserves are 100 million tons of oil and 35 billion cubic meters of natural gas. Annual oil production is projected at around 5 million tons, 2.5 times the current import volume.

Azerbaijani President Ilham Aliyev previously stated that SOCAR had begun developing oil blocks in Uzbekistan and expressed hope for “good news” within the next two years.

In September, Uzbek President Shavkat Mirziyoyev announced the discovery of “colossal gas reserves” at a depth of 6,500 meters — a first in the country’s oil and gas history.