The state-owned Uzbekneftegaz has identified plans for 2026 following a management change, the company's press service said.
The new chairman, Abdugani Sanginov, who replaced Bahodir Sidikov, chaired a meeting on December 19 to discuss measures to gradually reduce production costs and enhance oversight aimed at preventing theft and other illegal activities at oil depots.
The company's new management gave directives to expedite reforming, critically analyze the operations of the economic unit, and significantly reduce excess spending. Available funds are planned to be primarily contributed to geological exploration and for fundamental increase in production volumes.
Reportedly, Sanginov specifically emphasized that during the freezing winter days, stabilizing production and providing the household with gas are a priority in the national policies. He underscored that the key objective, defined by the head of state, was to primarily take into account the interests of the people, ensure an uninterrupted supply of energy resources, and maintain social stability," the statement read.
100-Day Shock Working
Today, Sanginov held another meeting to discuss achieving the priority objectives set by the head of state, increasing oil and gas production and petrochemicals volumes, and ensuring the efficiency and economic sustainability of the industry.
To take reforms to the next level and ensure the company's sustainable development, 10 priority areas have been identified.
1. Separation of strategy and operational management. It is planned to clearly separate strategic activities from day-to-day operational management. This should improve the quality of strategic decisions and reduce the workload on management by reducing current procedures and paperwork.
2. Setting up a strategy office. The company plans to establish a Strategy Performance Office (SPO), which will report directly to the Chairman of the Management Board. It will develop the strategy, oversee its implementation, and align the project portfolio with strategic goals.
3. Prioritization of investment efficiency. Investment programs will include only projects with proven economic viability and fully prepared pre-project documentation, ensuring the rational use of financial resources. 4. New approach to production. In oil and gas production, the company intends to abandon the "chasing of volumes" and focus on creating added value and profitability. The key criteria will be the economic efficiency and profitability of each field.
In this regard, it is planned to reduce costs for design, geophysical work, and geological exploration, including drilling, by approximately 20%.
5. Optimization of geological exploration costs. Expenditures on geological exploration and drilling will be reviewed with the aim of increasing their efficiency through the optimization of prices and standards.
6. Deep processing. Priority will be given to the development of advanced gas processing. In particular, it is planned to expand the capacity of the GTL plant to produce high-value-added products, reduce imports, and expand export potential.
7. Financial transparency. To increase operational transparency, it is planned to implement international financial reporting standards (IFRS), review the procurement system, and limit the practice of direct contracts.
8. Reducing debt burden. The company plans to ensure financial stability through effective borrowing management, reducing the debt burden, and developing a financial model for 2026.
9. HR Policy and KPIs. The HR management system will be revised, including the formation of a top management institute and the assessment of executive performance based on specific KPIs.
10. Digitalization and AI. The company intends to implement digital technologies and artificial intelligence-based solutions aimed at improving management and production efficiency, with an emphasis on measurable economic impact.
Following the meeting, Sanginov underscored that the implementation of these measures should ensure the sustainable development of the oil and gas industry and the transformation of Uzbekneftegaz into a modern, efficient, and competitive company. A "100-Day Shock Working period has been announced to implement these changes.
