Uzbekneftegaz to Tighten Control Over Joint Ventures

Tashkent, Uzbekistan (UzDaily.uz) — Uzbek state oil and gas company Uzbekneftegaz is strengthening control over joint ventures in which it holds stakes following the discovery of problems in management, financial discipline, and reporting, the news agency UzDaily.uz reported.

The issue was discussed at a meeting chaired by Abdugani Sanginov, the chairman of the board of Uzbekneftegaz. A preliminary analysis of joint ventures including Natural Gas-Stream, New Silk Road Oil and Gas, and ANDIJANPETRO revealed a series of systemic problems in work processes, accounting, and financial reporting.

Uzbekneftegaz said that reporting mechanisms between the joint ventures and the joint-stock company were not functioning fully. The company reported year-on-year declines in production volumes, issues regarding the efficient use of investment funds, insufficient financial stability, and incomplete fulfillment of dividend payment obligations. Uzbekneftegaz assessed that the lack of necessary founder oversight contributed to the worsening of these issues.

Under the new measures, Uzbekneftegaz plans to re-examine production capacities, the efficiency of geological exploration, and technical operations. An inventory of outstanding debts owed to Uzbekneftegaz will also be conducted.

The company will focus on digitalizing control over financial flows and procurement. All planned activities, investment projects, and work processes at joint ventures will require approval from Uzbekneftegaz, which will evaluate necessity, economic efficiency, and costs prior to implementation.

Uzbekneftegaz will review the financial condition and dividend policies of the joint ventures. The enterprises have been instructed to ensure full and timely dividend payments for 2025–2026, settle existing debts, and establish systematic control over future obligations.

Uzbekneftegaz said the new measures are intended to prevent the misuse or inefficient use of funds and ensure oversight of expenses and decision-making, with the ultimate goal of creating financially stable, profitable joint ventures with growing production figures and net profit.