Saneg: All gas and oil fields were and remain state property

Tashkent, Uzbekistan (UzDaily.com) -- All gas and oil fields in Uzbekistan have been and remain state property. This was stated by Sanoat Energetika Guruhi (Saneg).

In a number of foreign media and social networks, false information is being disseminated about the energy system of Uzbekistan, denigrating companies operating in this area.

Saneg carries out mining activities on the basis of relevant licenses. The company operates within the framework of the program to increase oil production in the Republic of Uzbekistan, the company noted.

Saneg’s key goal is to significantly increase the efficiency of depleted oil fields and increase oil production. To achieve this goal, the company attracts advanced world technologies, the best engineers and specialists in geological exploration, as well as significant investments that do not include budgetary funds.

Today, Saneg employs more than 10,000 Uzbeks, and also attracts about 200 highly qualified foreign specialists.

In 2020-2022, as part of the program to increase oil production, the company invested more than $540 million. As a result, Saneg increased its liquids production by 42%.

The entire volume of oil and condensate is processed at the Ferghana Oil Refinery with subsequent delivery to the domestic market.

The Fergana oil refinery, which is in dire need of modernization, was put up for auction in accordance with the Decree of the President of the Republic of Uzbekistan. The organizer of the auction was AUGA with the involvement of the international company KPMG (Netherlands). And the legal support of the transaction was provided by Dentons (USA).

Three applicants participated in the competition. As a result, the state’s share in this enterprise was acquired by Saneg, which offered better terms. The company has developed a program for the modernization of the enterprise, which included the preservation of jobs, the modernization of production, digitalization, an increase in the volume of its own processing, and social responsibility actions. The total cost of the program is $400 million. Participation of the state in the financing of the program is not provided. For 2021-2022 and $156 million was invested in the modernization of production. Work continues.

Saneg is also an investor in the creation of a modern gas chemical cluster in the Korakul free economic zone. This project will be implemented solely at the expense of the company’s own funds and attracted market loans and investments. Public funds will not be used. At the moment, the investor has already invested about US$390 million. An additional 2,600 jobs will be created. The forecast indicator of deductions to the budget is US$570 million per year, starting in 2026.

Saneg conducts its business openly, transparently, in accordance with the legislation of the Republic of Uzbekistan. The company’s team is making every effort to significantly increase the production of liquid hydrocarbons in the near future and fulfill all the company’s tasks.

Saneg will continue to develop the industry, train the youth of Uzbekistan, support its employees and their families for the benefit of the people of the Republic of Uzbekistan.