Uzbekistan and Azerbaijan have signed a production sharing agreement for the exploration and production of hydrocarbons in one of the most promising oil and gas regions of the country — the Ustyurt region. The document was signed between the Ministry of Energy of Uzbekistan and national oil and gas companies of both countries. The project represents the first ever bilateral energy alliance aimed at both strengthening domestic energy security and potentially expanding export supplies.
According to the terms of the agreement, joint work will start with seismic exploration on an area of about 1,000 square kilometers, covering part of the territory of the Ustyurt plateau. If the results of geological exploration confirm the presence of industrially significant oil and gas deposits, the partners will start full-scale development of the field. Uzbekistan has previously signed similar agreements with Russian companies, but cooperation with Azerbaijan marks the beginning of a new phase of international participation in national energy policy.
The Ustyurt region is one of the five territories of Uzbekistan with proven hydrocarbon reserves. It covers about 110 thousand square kilometers, of which 108 thousand are considered promising from the point of view of industrial production. Geological exploration in this area has been conducted since the middle of the XX century, and by 2021 26 oil and gas fields were discovered here. The joint plans of the parties provide for the assessment of resources at the level of 35 billion cubic meters of gas and over 100 million tons of oil.
The deepening of the energy partnership between Uzbekistan and Azerbaijan is based on interstate agreements on the development of cooperation in the fuel and energy sector. In 2023, the parties outlined a course for expanding economic cooperation, and 2025 was declared the year of economic cooperation. The agreement signed with SOCAR reflects not only economic interests, but also political readiness for a long-term strategic alliance.
For Uzbekistan, the successful implementation of the project will reduce its dependence on oil and gas imports, whose volumes are showing steady growth. In 2024, the country increased gas imports three times, and oil purchases exceeded $ 1.5 billion. Increasing domestic production is one of the key elements of the program to increase energy self-sufficiency.
For SOCAR, participation in the project opens up access to new fields in Central Asia and provides an opportunity to strengthen its position in the region. The company claims the high geological attractiveness of the Uzbek territories and the availability of a specific action plan that involves the rapid launch of work.
Cooperation in the Ustyurt region can become a foundation for future projects covering both traditional and promising forms of energy. In case of successful implementation, the extracted resources will be used both for the domestic market and, if necessary, for export supplies. The project supports Uzbekistan's strategic line to attract investment in the fuel and energy sector and develop international partnership in the field of energy security.
