Uzbekneftegaz Criticizes Oil Depot Operations and Announces Staffing Decisions

Tashkent, Uzbekistan (UzDaily.com) — Abdulgani Sanginov, Chairman of the Board of JSC Uzbekneftegaz, held a critical meeting with heads and responsible personnel of the company’s oil depots, during which the results of 2025 operations, accumulated systemic problems, and priority tasks and plans for 2026 were openly and thoroughly discussed.

The meeting addressed in detail issues of financial stabilization of the oil depots, strengthening managerial and operational discipline, improving the efficiency of asset utilization, creating decent working conditions for staff, and ensuring a phased increase in average salaries.

Special emphasis was placed on the need for strict adherence to the principles of honesty, integrity, and transparency in serving the public, as well as on ensuring stable and uninterrupted supplies of high-quality petroleum products, which must become unconditional priorities for all oil depots.

At the same time, it was stated clearly that the current condition of most oil depots remains unsatisfactory, and a transparent and effective system for petroleum product distribution has yet to be established.

Strong criticism was directed at the significant growth of debt owed to the Bukhara Oil Refinery during 2025, as well as the weak oversight of on-site staff activities.

It was noted that, due to the practice of supplying petroleum products without prepayment, as of January 1, consumer debt to the depots reached 322.5 billion soums, of which 243.2 billion soums, or 75%, is owed by agricultural enterprises.

Although distributing petroleum products without payment is effectively prohibited, products were systematically issued on credit, while debt collection efforts were extremely ineffective. As a result, 158 billion soums, or 65% of agricultural enterprise debt, were deemed irrecoverable.

Following audits and analytical reviews, managers of the Termez, Jizzakh, Marokand, Kuchlik, and Turakurgan oil depots were dismissed for serious violations committed during the year.

Attention was also drawn to the inefficient use of property assets. It was noted that a significant portion of depots do not fully utilize existing storage capacities, while some facilities remain virtually idle, leading to excessive costs and negatively affecting financial results. Specific instructions were given for land conservation and cost optimization.

The passive stance of depot managers, who failed to seek additional revenue sources, was also negatively assessed.

To sharply reduce theft and other illegal activities, it was proposed to study advanced international experience in digitalization and develop a national model based on it. Digital monitoring was emphasized as the only truly effective tool in combating violations.

Accordingly, a task was set to develop a 2026 program for full automation of all oil depots with integration into the Central Production and Dispatching Society’s monitoring system.

In addition, the performance of compliance officers at the depots was deemed unsatisfactory. From now on, each employee’s key performance indicators will directly depend on the number and nature of violations identified at their respective depot.

Given the current situation, an “emergency status” has been declared at the depots as part of the “Critical 100 Days” initiative. A decision was made to develop an urgent comprehensive program for their financial and operational recovery. Key areas will include curbing theft, reducing tax burdens, increasing product sales volumes, and actively collecting receivables.

All planned measures, it was emphasized, will be based on creating decent working conditions, incentivizing honest and diligent work through salary increases, and practically implementing what is referred to as a “vaccine of honesty.”

Ensuring the supply of high-quality petroleum products must become a personal responsibility for every employee and a daily professional principle.