Uzbekneftegaz and SOCAR Begin Geological Exploration on the Ustyurt Plateau

Tashkent, Uzbekistan (UzDaily.com) — Uzbek state company Uzbekneftegaz and the Azerbaijani state corporation SOCAR have begun practical implementation of a joint project on the Ustyurt Plateau, Chairman of the Board of Uzbekneftegaz Bahodirjon Sidikov told Uzbekiston 24 TV.

According to Sidikov, the state company proposed oil and gas projects worth $10 billion, with one of them being the Ustyurt project. The first phase has launched field seismic surveys, and by the directive of the heads of state, both parties are accelerating project implementation.

“We have high expectations for this project. We developed three scenarios, and even in the most unfavorable one, the project will help eliminate the need to import petroleum products,” Sidikov said.

This week, the project operator’s office opened — Ustyurt Operating Company, established to carry out geological exploration and subsequent hydrocarbon production in the Ustyurt oil and gas region.

Uzbekneftegaz emphasized that the production-sharing agreement (PSA) was approved in a short timeframe, the operating company has been registered, professional teams formed, and all necessary permits obtained. Preparations for field geological exploration are currently underway.

According to the Unified State Register of Enterprises, Ustyurt Operating Company was registered in September 2025 with a charter capital of 3.7 billion soums. The company provides technical services in oil and gas extraction. SOCAR BTBK LLC is its sole founder.

The Ustyurt Plateau project has been in development since August 2024, when Uzbekneftegaz and SOCAR signed a cooperation agreement in the oil and gas sector.

On July 24, 2025, a production-sharing agreement was signed, outlining seismic and geological exploration, as well as hydrocarbon extraction.

The project is expected to allow Uzbekistan to fully cover its oil imports and meet domestic energy needs for the next 25 years. The extracted gas will be supplied to the domestic market, while the industry will benefit from affordable and high-quality petroleum products.

The project is planned in three phases with total investments of approximately $2 billion. Estimated reserves are 100 million tons of oil and 35 billion cubic meters of natural gas. Annual oil production on the Ustyurt Plateau could reach 5 million tons — 2.5 times the country’s current imports.

Azerbaijani President Ilham Aliyev stated that SOCAR has begun developing the oil field in Uzbekistan and expressed hope for initial results within one to two years.

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

Initial oil and gas production is planned within 3–5 years, taking into account the construction of the necessary infrastructure. Seismic exploration, drilling, and preliminary results are scheduled for the first three years.

Additionally, British Petroleum (BP) has expressed interest in participating in hydrocarbon production on the Ustyurt Plateau. Preliminary negotiations are currently underway regarding its involvement in the production-sharing agreement with Uzbekneftegaz and SOCAR.