A new chapter in Uzbekistan-Azerbaijan energy cooperation opened today with the official inauguration of the Ustyurt Operating Company office in Tashkent, established to execute the Production Sharing Agreement (PSA) for the Ustyurt region in partnership with Azerbaijan’s State Oil Company (SOCAR), Uzbekneftegaz JSC announced.
The ceremony marks the project’s transition into its active phase, with Uzbekneftegaz emphasizing that the rapid progress—PSA approval, company registration, team formation, and permit acquisition in record time—demonstrates strong bilateral commitment.
The Ustyurt Operating Company will focus on expanding Uzbekistan’s resource base, enhancing exploration efficiency, and ensuring long-term energy security through the adoption of advanced technologies and sustainable practices.
The PSA, signed on July 24, 2025, by Uzbekistan’s Ministry of Energy, SOCAR, and Uzbekneftegaz, covers six investment blocks in the Ustyurt region: Boyterak, Terengkuduk, Birgori, Kharoy, Karakalpok, and Kulboy. SOCAR will serve as operator during the initial exploration stage, which includes 3D seismic surveys over at least 1,000 square kilometers and the drilling of at least one exploratory well within the first five years.
Preliminary estimates suggest potential reserves of up to 100 million tons of oil and 35 billion cubic meters of natural gas, with projected annual production of 5 million tons of oil once operational. Total investment is estimated at $2 billion.
Uzbekneftegaz Chairman Bakhodirjon Sidikov previously confirmed that geological exploration is scheduled to begin in Q1 2026.
The new operating company is seen as a cornerstone for deeper interstate energy ties, creating robust institutional mechanisms for future joint ventures.
https://report.az/en/energy/uzbekistan-and-azerbaijan-create-operating-company-for-ustyurt-project#