Oil Output Declines on Fields Managed by Saneg

Tashkent, Uzbekistan (UzDaily.com) — Oil production volumes at fields previously transferred by state company Uzbekneftegaz to private firm Sanoat Energetika Guruhi (Saneg) initially showed growth but have declined in subsequent years, according to Nodir Mukhiddinov, Chief Geologist of Uzbekneftegaz, speaking at a press conference on 20 April.

He stated that in 2019, more than 100 oil and gas fields were transferred from Uzbekneftegaz management to Saneg based on special government decisions. Production activities were carried out at these sites, and at certain stages an increase in output was recorded.

However, Mukhiddinov noted that in recent years a decline in previously achieved production volumes has been observed. He added that the relevant information is held by the company and is supported by available data.

Uzbekneftegaz said that further steps regarding these fields will be determined following the work of a special commission established to review the situation. Decisions will be made based on its findings.

Earlier in January, the government of Uzbekistan decided to sell non-core assets of several companies, including Enter Engineering, Eriell Group, and Sanoat Energetika Guruhi, linked to businessman Bakhtiyor Fazylov, in order to repay debts to employees, the state budget, and banking institutions.

It was also noted during the press conference that Eriell and several other companies have outstanding obligations to Uzbekneftegaz. Some disputes are currently being reviewed in court, while recovery measures are being implemented on certain issues.