Tashkent, Uzbekistan (UzDaily.com) — On 24 July, Uzbekistan’s Ministry of Energy, the State Oil Company of Azerbaijan Republic (SOCAR), and Uzbekneftegaz signed a Production Sharing Agreement (PSA), according to a statement from the Ministry’s press service.

The agreement outlines the implementation of geological exploration and subsequent hydrocarbon production on investment blocks located in the oil and gas-rich Ustyurt region. In the initial phase, 3D seismic surveys will be conducted over an area of no less than 1,000 square kilometers. Based on the results, drilling will begin on an exploratory well. Should a commercially viable deposit be discovered, the parties will move forward with its development and industrial-scale extraction.

The Ministry emphasized that signing the PSA represents a significant step in strengthening the energy partnership between Uzbekistan and Azerbaijan, laying a solid foundation for long-term cooperation in the exploration and development of hydrocarbon resources.

Uzbekistan’s Minister of Energy, Jurabek Mirzamakhmudov, stated that the partnership with SOCAR reflects the country’s commitment to diversifying investment sources and applying advanced international expertise. According to him, the Ustyurt region has high potential, and the agreement paves the way for its effective development. He expressed confidence that the project’s implementation would contribute to technological progress and economic growth.

SOCAR President Rovshan Najaf, in turn, noted that the signing of the agreement reaffirms the company’s long-term strategy for expanding its presence in the energy sector of Central Asia and the Caspian region. He highlighted that SOCAR is enthusiastic about launching the project, drawing on its accumulated experience and cutting-edge technological solutions.

Bahodir Sidikov, Chairman of the Board of Uzbekneftegaz, expressed confidence that the agreement would further strengthen the company’s position as a reliable and innovation-driven partner, open to international cooperation and large-scale investments.

It is worth recalling that in May 2018, Uzbekneftegaz, SOCAR, and BP Exploration (Caspian Sea) signed a memorandum of intent providing for potential joint geological exploration of the Aralomorsk, Samsko-Kosbulak, and Baiterek investment blocks in the Ustyurt region.

However, in 2021, BP withdrew from the project, citing a sharp strategic shift — the British company had announced a move toward a “green transition” and the abandonment of new investments in hydrocarbon extraction. According to former Uztransgaz head Behzod Normatov, the parties had already reached the final stage of signing the PSA, with SOCAR expected to participate with up to a 25% stake, and BP acting as the main investor. After BP’s withdrawal, the project was put on hold, and efforts to attract new investors have continued since.

In August 2024, Uzbekneftegaz and SOCAR signed a strategic cooperation agreement in the oil and gas sector.