27th International Oil & Gas Exhibition and Conference – OGU 2025

13 - 15 May 2025, Uzexpocentre NEC

News

Uzbekistan may join the Azerbaijani gas production project in the Caspian Sea

Uzbekneftegaz may enter the Shah Deniz gas condensate project of the Azerbaijani shelf of the Caspian Sea. This was announced to journalists by the Minister of Investment, Industry and Trade of Uzbekistan Laziz Kudratov on the sidelines of the II Azerbaijan-Uzbekistan Interregional Forum in Guba, Trend writes.

"We invite SOCAR and are talking with it about its participation in oil and gas production projects in Uzbekistan. Similarly, the issue of Uzbekneftegaz's entry into gas production projects in Azerbaijan is currently being discussed and is at the final stage. Yes, we are referring to the Azerbaijani Shah Deniz project. Equity participation is a subject of negotiations," he explained.

The head of the MIPT expressed hope that the signing of documents on the entry of Uzbekneftegaz into Shah Deniz will take place in the coming months.

"Our participation in this project requires serious financial and legal expertise with the participation of a foreign consultant. We are serious about these prospects," the minister said.

In August, Uzbekneftegaz and SOCAR agreed to implement joint projects in the oil and gas sector of Uzbekistan and Azerbaijan. As we reported earlier, Uzbekneftegaz, together with SOCAR, plans to start developing three hydrocarbon fields in Azerbaijan in 2024.

The Shah Deniz project has been implemented since 1996. In 2013, the validity period of the agreement on the development of the Shah Deniz field was extended until 2046.

Currently, the project participants are British BP (production operator — 29.99%), Russian Lukoil (19.99%), Turkish Türkiye Petrolleri Anonim Ortaklığı (TPAO, 19%), Russian NIKO (10%) and SGC Upstream (representing the interests of Azerbaijan, 21.02%).

Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas, so far about 20% of this resource has been extracted.

Gas from Shah Deniz is supplied to Georgia, Turkey and Europe via the South Caucasus pipeline.

In October 2019, Uzbekneftegaz and SOCAR announced plans to jointly produce oil in the Azerbaijani part of the Caspian Sea.

In March 2023, Uzbek President Shavkat Mirziyoyev said during a visit to Azerbaijan that the Uzbek side was preparing a "big project in the oil and gas industry" with SOCAR. Previously, Uzbekneftegaz had not implemented projects outside Uzbekistan. In January 2018, President Shavkat Mirziyoyev instructed the company to step up work on entering international markets.