Uzbekistan Negotiates with BP on Potential Participation in Ustyurt Production Sharing Agreement with SOCAR

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan is holding preliminary talks with British energy company BP regarding its possible participation in the Production Sharing Agreement (PSA) for the Ustyurt region. This was stated in an exclusive interview with Report.az by the country’s Minister of Energy, Jurabek Mirzamahmudov.

According to the minister, the project is currently financed on a parity basis by SOCAR and Uzbekneftegaz, each holding a 50 percent stake. The consortium of these companies provides funding for the PSA.

“BP has expressed interest in the project, and preliminary negotiations are underway. SOCAR has historically maintained strong relations with BP,” Jurabek Mirzamahmudov said, adding that the involvement of the British partner would strengthen international cooperation in the energy sector.

In August 2024, Uzbekneftegaz and the Azerbaijani company SOCAR signed a cooperation agreement in the oil and gas sector. Geological exploration work began on the Ustyurt plateau as part of the project, including seismic surveys and preparation for hydrocarbon production.

On July 24, 2025, the parties signed the Production Sharing Agreement, which is expected to fully meet Uzbekistan’s domestic oil demand for the next 25 years. Produced gas will be supplied to the domestic market, and the industrial sector will receive high-quality, affordable petroleum products.

The project is being implemented in three phases with planned investments of approximately US$2 billion. Estimated reserves amount to 100 million tons of oil and 35 billion cubic meters of natural gas, with annual oil production projected at 5 million tons—2.5 times higher than current import levels.

On the Ustyurt plateau, at a depth of 6.5 kilometers, “colossal gas reserves” have been discovered, President Shavkat Mirziyoyev stated in September 2025.