Uzbekistan Aims to Phase Out Oil Product Imports through SOCAR Project

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan plans to reduce its dependence on imported crude oil and petroleum products through a joint project with the Azerbaijani state oil company SOCAR in the Ustyurt region of Karakalpakstan.

This was announced by Bahodirjon Sidikov, Chairman of the Board of Uzbekneftegaz, during the launch ceremony of new energy facilities on December 5.

According to Sidikov, seismic field surveys have already commenced, and the project has been designed with multiple scenarios in mind. Even under the most conservative scenario, local hydrocarbon production will allow the country to eliminate the need for imported petroleum products. “Practical steps are being accelerated in line with the directives of the Presidents of Uzbekistan and Azerbaijan,” he noted.

Azerbaijan’s Minister of Energy, Parviz Shahbazov, confirmed that comprehensive seismic surveys will begin in the Ustyurt region, forming the foundation for future extraction.

In early December, an office for the joint company Ustyurt Operating Company opened in Tashkent. The company will conduct exploration and production under a Production Sharing Agreement (PSA) signed by SOCAR, the Ministry of Energy of Uzbekistan, and Uzbekneftegaz.

The agreement covers the Boyterak, Terengkuduk, Birgori, Haroy, Karakalpak, and Kulboy blocks.

Under the PSA, exploration activities, including the drilling of at least one exploration well, are to be completed within five years, with SOCAR acting as the project operator throughout the period.

Imports of crude oil and petroleum products remain substantial for Uzbekistan. According to the “Uzbekistan 24” TV channel, the country purchases up to 2 million tons annually, primarily from Russia.

In 2024, imports totaled $1.97 billion, up 22.2% compared to 2023. For the first 11 months of 2025, the volume of imports reached $1.42 billion, an increase of 6% compared to the same period last year, with diesel accounting for $500 million (+70%) and gasoline $441.7 million (+14.3%).

Authorities expect the SOCAR project to strengthen Uzbekistan’s energy independence and significantly reduce import reliance in the coming years.