Uzbekistan and the State Oil Company of the Azerbaijan Republic (SOCAR) have signed a significant Production Sharing Agreement (PSA) to explore and develop hydrocarbon reserves on the Ustyurt Plateau in western Uzbekistan.
Valued at approximately $2 billion, the project encompasses extensive seismic surveys, geological exploration, and in the next phase, oil and gas extraction. The news was reported citing Uzbek media sources.
Experts estimate that the region may hold up to 100 million tons of oil and 35 billion cubic meters of natural gas. Once the project becomes fully operational, annual oil production is expected to reach up to 5 million tons, potentially halving Uzbekistan’s current oil imports and meeting the country’s domestic demand for the next 25 years.
Adhamjon Ubaidullaev, Head of the Main Department of the Uzbek Ministry of Energy, emphasized the strategic importance of this three-phase program, noting that it aims to boost domestic gas supply and ensure affordable energy products for industry.
The project will heavily rely on modern technologies, including 3D seismic imaging, digital geological modeling, smart extraction systems, and automated monitoring mechanisms. This highlights that SOCAR and Uzbekistan view this cooperation not only as a means of resource development but also as a commitment to innovation and technological advancement.
