Uzbekneftegaz and Azerbaijan's SOCAR have launched a mineral exploration and production project in the Ustyurt area of Karakalpakstan, the press service of the Azerbaijani Ministry of Energy said.
Azerbaijani Energy Minister Parviz Shahbazov attended a ceremony in Tashkent with the participation of President of Uzbekistan Shavkat Mirziyoyev dedicated to the Launch of New Projects and the Start of Construction in the Uzbekistan’s Energy Sector.
Projects implemented in various provinces of Uzbekistan together with Türkiye, the United Arab Emirates (UAE), Saudi Arabia and China, as well as with Azerbaijan were presented via teleconference.
Speaking at the ceremony, Minister Parviz Shahbazov emphasized that thanks to the political will of the leaders of both countries, Azerbaijan-Uzbekistan relations have risen to the level of strategic alliance, and that the personal trust and friendship between the heads of state play an invaluable role in this process. The Minister noted that our country’s joining the Central Asia Summit as a full-fledged participant, as well as the processes related to the opening of the Zangezur Corridor which increases the importance of the Middle Corridor have opened a new chapter in the development of our relations. It was noted that the energy partnership occupies a special place in these new realities, which ensures the integration of our countries as a single geopolitical space: “The launch of the exploration project in the Ustyurt area, carried out with the joint cooperation of SOCAR and Uzbekneftegaz, is a clear example of this. This project reaffirms the strategic importance of our energy partnership and creates the basis for strengthening the exchange of knowledge and technology in the hydrocarbon sector of both countries, regional energy integration and joint participation in energy supply.”
The minister also added that another project of strategic and regional importance is the Trans-Caspian Energy Corridor, which for the first time in history will connect the electric power systems of Azerbaijan, Uzbekistan and Kazakhstan. In the future, this initiative will expand on the basis of Azerbaijan's transit role and create new opportunities for the transmission of renewable energy along the Middle Corridor between Asia and Europe.
Project Operator Office inaugurated
On December 4, the official opening of the office of Ustyurt Operating Company, founded to implement the project for geological exploration and production in the Ustyurt oil and gas region, took place in Tashkent.
The opening ceremony was attended by Uzbekneftegaz Chairman Bakhodirjon Sidikov, SOCAR Vice President Arzu Javadova, and representatives of the project teams and government agencies.
According to the Azerbaijani company, Ustyurt Operating Company was registered swiftly: the necessary permits and licenses were obtained, professional teams were formed, and preparations for field geological exploration began.
The opening of the company's office marks the transition of the project to the active implementation phase, according to the statement.
According to Uzbekneftegaz, Ustyurt Operating Company's activities are aimed at strengthening the resource base, increasing the efficiency of geological exploration, and ensuring long-term energy sustainability.
About the Project
The Ministry of Energy of Uzbekistan, the State Oil Company of Azerbaijan (SOCAR), and Uzbekneftegaz signed a production sharing agreement (PSA) on July 24. The document provides for geological exploration and subsequent hydrocarbon production at the investment blocks of the Ustyurt oil and gas region—Boyterak, Terengkuduk, Birgori, Kharoy, Karakalpak, and Kulboy.
According to the PSA, prospecting and exploration work, as well as the drilling of at least one exploratory well, are planned to be completed within five years. During this period, SOCAR will act as the operator.
