Special task forces in Uzbekistan are currently reviewing the operations of private and foreign oil and gas companies, focusing on their compliance with licensing obligations and project documentation. This was announced during a press conference on April 20 by Nodir Mukhitdinov, Chief Geologist of Uzbekneftegaz.

The move follows the March government meeting chaired by the president, where the role of private and foreign players in the sector was a key agenda item. Bekhzot Narmatov, chief of the oil and gas reform sector within the Presidential Administration’s Project Office, previously noted that these companies currently manage approximately 25% of the country’s reserves. "We have been given directives to review their activities and improve their overall efficiency," Narmatov stated.

Mukhitdinov clarified that an interagency audit is now underway to carry out these directives. "Special working groups are active, involving authorized bodies such as the Ministry of Energy, the Ministry of Mining and Geology, and the Accounts Chamber, alongside technical experts from Uzbekneftegaz," he explained.

The investigation focuses on whether foreign firms and joint ventures are meeting their commitments regarding geological exploration within their assigned investment blocks. "We are looking at whether licensing obligations and agreements are being honored, and whether the production targets specified in the licenses and project documents are being met," Mukhitdinov added.

Once the review is complete, authorities plan to draft proposals to tighten oversight and optimize cooperation with foreign partners.

“In essence, we are developing proposals to streamline our partnerships with licensed foreign firms, enforce strict compliance with their obligations, and ensure that the state’s strategic objectives are met,” stated Mukhitdinov.

In a sweeping move, Abdugani Sanginov, head of Uzbekneftegaz, has ordered a suspension of all contracts with service and maintenance providers operating in Uzbekistan. These agreements are now subject to a mandatory review, according to his spokesperson, Mumin Ibodov.

“A decisive move was made between December 18 and 31. The Chairman issued a clear directive: if existing contracts are not renegotiated to reflect current market realities—specifically by cutting prices by 20–25%—we will terminate those partnerships. That is the non-negotiable requirement,” Ibodov explained.

Meanwhile, the industry is facing a downward trend in production. National gas output has dropped from 53.8 billion cubic meters in 2021 to 42.3 billion by the end of 2025—a significant 21.3% decline.

Uzbekistan’s energy framework relies heavily on long-term Production Sharing Agreements (PSAs). Key deals include the 2004 agreement with LUKOIL for the Kandym-Khauzak-Shady and Southwest Gissar projects, which run until the mid-2040s. Similarly, Gazprom operates the Shakhpakhty and Jel fields under long-term PSAs. Other major ventures include the 35-year "25 Years of Independence" (M25) project in Surkhandarya and the Uz-Kor Gas Chemical joint venture—a 50/50 partnership with a South Korean consortium involving Kogas and Lotte Chemical.

Last year, Uzbekneftegaz’s production fell short of targets at 25.2 billion cubic meters. The strategy for 2026–2027 now pivots toward stabilizing output, bolstering reserves, and expanding domestic processing capabilities.