Uzbekistan plans to review the operating conditions of private operators who have failed to increase natural gas reserves, Uzbekneftegaz said in a statement.

Uzbekneftegaz's current state of affairs and priorities were showcased at a presentation made to the president on January 12. While Shavkat Mirziyoyev set the goal to increase natural gas reserves, improving production and processing efficiency, attracting investment, stepping up financial discipline, and combating corruption in the industry.

Shavkat Mirziyoyev gave a directive to Uzbekneftegaz to increase daily gas production to 70 million cubic meters and ensure production of at least 25.4 billion cubic meters by 2026.

The company's new chairman, Abdugani Sanginov held a meeting and outlined measures to ensure the implementation of the president's instructions.

"The Main Problem Is the Declining Reserves"

According to the analysis, the key factor hindering gas production growth remains the insufficient growth of new reserves.

"Despite the fact that most promising investment blocks have been transferred to private investors, their exploration work is proceeding extremely slowly," the statement reads.

Sanginov tasked himself with re-inventorying 31 investment blocks in the Surkhandarya, Gissar, and Ustyurt regions, where reserve growth has not been achieved.

There are also plans to transfer a number of blocks currently on the balance sheet of the Ministry of Geology to Uzbekneftegaz. The company intends to develop 30 new promising areas annually in 2026-2027.

Revision of Investor Rules

Special attention was paid to the activities of private operators of gas production projects.

"Officials have been given directives to review the activities of private gas production operators and attract new investors through open tenders to replace those who are failing to fulfill their obligations," the company added.

According to Uzbekneftegaz, the lack of transparent pricing mechanisms, especially for fields with small reserves or challenging production conditions, is reducing investor interest. To address this issue, it is planned to develop feasibility studies and set starting prices for natural gas.

Financial Recovery of the Company

The president approved proposals aimed at improving the company's financial position. Specifically, it is proposed to use dividend payments (currently paid to the state) for geological exploration.

Products are planned to be sold through open exchange trading, and prices for processing services for private companies will be set according to market principles.

The need for a strict ban on sponsorship and non-core expenses (the company sponsors the Bunyodkor football club and owns a number of non-core assets) was also emphasized, ensuring that the freed-up funds are used to fulfill key production objectives.

Digitalization and Anti-Corruption Measures

To prevent theft and corruption, it is planned to ensure full control over the movement of products. In particular, oil depots and pipeline systems are planned to be connected to SCADA and other digital platforms.

Oil products will be sold exclusively on a 100% prepayment basis, while accounts receivable will be reduced and oversight will be strengthened in cooperation with law enforcement agencies.

The president set the goal to increase daily gas production from 66 to 70 million cubic meters by 2026. To achieve this, 149 geological and technical operations are planned, 70 wells are drilled, 40 wells are overhauled, and 3D seismic surveys are conducted over an area of ​​6,500 square kilometers.

He emphasized that each order will remain under review until it is documented, which should increase the personal accountability of senior officials.

According to the Energy Institute, Uzbekistan's confirmed natural gas reserves in 2024 stood at 1.97 trillion cubic meters. Meanwhile, production has been declining in recent years: 44.6 billion cubic meters at the end of last year (32.2 billion cubic meters in the first nine months, -4.4%). Compared to 2019 (59.4 billion), the decline was 14.9 billion cubic meters.

For the first 11 months of 2025, production amounted to 38.9 billion cubic meters (-5.1%, or 2.1 billion less).