“Uzbekneftegaz” to Focus on Profitability, Deep Processing, and Optimization

Tashkent, Uzbekistan (UzDaily.com) — A meeting was held at JSC “Uzbekneftegaz” under the chairmanship of Board Chairman Abdugani Sanginov, dedicated to shaping the company’s short- and long-term strategy for developing the country’s oil and gas sector.

The session addressed priority tasks set by the Head of State, increasing oil and gas production and processing volumes, and ensuring high efficiency and economic stability within the industry.

The chairman emphasized the need to develop a unified company-wide strategy covering all areas of activity and to implement a concrete program to achieve it. As part of reforms aimed at sustainable development, improving production efficiency, and creating economic value, ten key priorities were identified. These will serve as the foundation for the strategy and ensure timely fulfillment of objectives set by the country’s leadership.

A primary focus will be separating strategic management from operational oversight. This approach allows the leadership to concentrate on strategic decisions while minimizing involvement in daily operations and paperwork. A Strategy Office (SPO) will be established, reporting directly to the chairman, responsible for developing, implementing, and monitoring the company’s strategic goals.

Investment policy will receive particular attention: programs will include projects with proven economic efficiency and ready pre-project documentation to ensure rational use of financial resources. The new approach to oil and gas production emphasizes added value and profitability of each field rather than pursuing sheer volume. At the same time, costs for design, geophysical and geological work, including drilling, are set to be optimized by 20%.

Significant emphasis will be placed on deep gas processing to produce high-quality finished products, reduce imports, and expand export potential, including through increasing the capacities of the GTL plant. To enhance financial transparency, international financial reporting standards (IFRS) will be implemented, procurement systems inventoried, and direct contracts restricted.

The company’s financial resilience will be strengthened through debt reduction and the development of a 2026 financial model. Simultaneously, human resource policies will be revised with the creation of a top management team and the introduction of a KPI-based leadership evaluation system. Digitalization and the use of artificial intelligence technologies will serve as key tools for improving management and production efficiency, with all digital projects focused on concrete results and economic benefits.

The meeting concluded that this comprehensive set of measures will ensure sustainable development of the country’s oil and gas sector, transform JSC “Uzbekneftegaz” into a modern, efficient, and competitive company, and lay the groundwork for implementing the announced 100-day action plan.