Baku Energy Forum - Uzbekneftegaz eyes to up exports by SOCAR trading

Uzbekneftegaz eyes to up exports by SOCAR trading


Uzbekistan wants to increase export of oil and gas and chemical products through SOCAR Trading, which is among major world trading companies for oil and oil products.

On October 13, a delegation led by Uzbekistan’s First Deputy Minister of Energy Zhurabek Mirzamakhmudov and Chairman of the Board of JSC Uzbekneftegaz Bakhodir Sidikov met with President of Azerbaijan’s State Oil Company (SOCAR) Rovnag Abdullayev to discuss a number of joint projects in the oil and gas and chemical sectors.

The sides discussed the implementation of joint projects, and also developed mechanisms to accelerate their implementation, Uzbekneftegaz reported.

In particular, road maps have been signed for exploration projects at Uzbekistan’s investment blocks and for increasing production at the fields of Qashqadaryo Province. These roadmaps provide for an early transition to practical implementation of agreements.

Moreover, the parties reached a number of agreements allowing both acceleration of work on restoration and overhaul of wells, and organization of production of oil and gas equipment and components used in drilling and overhaul of wells in Uzbekistan.

The sides have also reached an agreement on a joint study of oil production projects on the Azerbaijani part of the Caspian Sea.

On October 14-15, the Uzbek delegation visited a number of SOCAR enterprises, including the NIPI Neftegaz-SOCAR's Oil and Gas Research and Design Institute. NIPI Neftegaz participated in the design of the Fergana Oil Refinery in 1959.

In addition, a visit has been organized to the enterprise for the production of chemical reagents, as well as the oil and gas equipment of SOCAR.

Uzbekneftegaz notes that the possibilities of increasing the export potential of oil and gas and chemical products of Uzbekistan have been discussed with SOCAR Trading company.

By 2020, Uzbekistan plans to implement 38 projects in the oil and gas industry with a total value of about $20.6 billion. The projects will bring total gas production in the country to 53.5 billion cubic meters by 2017-2021, and oil production to 1.9 million tons.

The capacities of Uzbekneftegaz allow for the production of natural gas in the amount of about 70 billion cubic meters and liquid hydrocarbons in the amount of 8 million tons per year.

As of May 2019, BP, SOCAR and Uzbekneftegaz signed an agreement on geological exploration at four investment blocks in Uzbekistan. The document provides for geological exploration in the Uzbek part of the Aral Sea, Samsko-Kosbulak and Baiterek investment blocks of the Ustyurt region.

Another agreement was signed by SOCAR and Uzbekneftegaz, envisaging the development of four fields in the Qashqadaryo Province.  

At the same time, in 2016, SOCAR and Uzbekneftegaz signed a Memorandum providing for cooperation in the field of exploration and development of oil and gas fields and other potential areas for the development of the energy sector.

Moreover, SOCAR and Uzbekneftegaz reached an agreement on joint oil and gas operations in Azerbaijan and Uzbekistan, as well as in third countries in June 2017.