Uzbekneftegaz Establishes Committee to Monitor Investment Project Efficiency

Tashkent, Uzbekistan (UzDaily.com) — JSC Uzbekneftegaz has established an Investment Committee, including representatives from supervisory authorities and foreign experts, the company’s press service reported.

The committee’s main objectives are to enhance the economic efficiency of investment projects and improve decision-making processes. In addition, the new body will work to minimize risks during project implementation.

It will evaluate investment initiatives to form an effective project portfolio and monitor their execution. If significant deviations from approved plans are identified, the committee will make decisions on necessary project adjustments.

Strategically important projects are placed under special oversight to ensure funds are used as intended. This year’s investment program targets US$1.2 billion in expenditures.

The investment program has been revised to account for project economic efficiency, financial sustainability, and contribution to expanding the resource base. Following a re-evaluation, several initiatives lacking sufficient economic justification were removed from the portfolio.

The company is also optimizing external debt to reduce financial burdens, while simultaneously increasing the share of domestic funding sources for projects.

A key focus remains the development of geological exploration. Notably, an agreement was reached with BGP, part of China National Petroleum Corporation (CNPC), to conduct exploration in prospective blocks in the Ustyurt region, laying the groundwork for future production growth.

Modernization and efficiency improvement of production operations are also priorities. The investment program includes a major project to procure drilling equipment and well repair machinery. Negotiations with Xibu (also part of CNPC) have been held to involve the company in drilling operations. Additionally, agreements with Shandong Molong and Hengyang Valin have been reached for the supply of pipe products for drilling up to 7,000 meters.

Another critical direction of the investment policy is infrastructure development. Agreements have been made to construct wellhead compressor stations at fields, expected to enhance production stability and efficiency.