Today, the Ministry of Energy of Uzbekistan, the State Oil Company of Azerbaijan (SOCAR) and Uzbekneftegaz signed a production sharing agreement (PSA), the press service of the Ministry of Energy said.
The PSA provides for geological exploration and subsequent production of hydrocarbons in the investment blocks of the Ustyurt oil and gas region.
As part of the PSA, it is planned to conduct 3D seismic exploration over an area of at least 1,000 square kilometers. Based on its findings, geological exploration work will begin at one well. If a commercial field is discovered, the parties will proceed to its development and production.
Reportedly, the signing of the agreement was an important step in the development of energy partnership between Uzbekistan and Azerbaijan and laid a solid foundation for long-term cooperation in the exploration and development of hydrocarbon resources.
"The partnership with SOCAR reflects the strategic aspiration of New Uzbekistan to diversify investment sources and implement the best international practices. The Ustyurt region has high potential, and the signing of the PSA opens new horizons for its effective development. We are convinced that this project will become an important driver of technological progress and economic growth," said Energy Minister Jurabek Mirzamakhmudov.
"The signing of this PSA is evidence of our long-term strategy for the development of the energy sector in Central Asia and the Caspian region. SOCAR is excited to begin implementing the project, applying its accumulated experience and advanced technological solutions," said SOCAR President Rovshan Najaf.
Bakhodir Sidikov, Chairman of the Board of Uzbekneftegaz, said that the agreement would strengthen the company's position as a "reliable and innovation-oriented partner, open to international cooperation and large-scale investments."
