Uzbekistan and SOCAR Sign $2 Billion Oil and Gas Deal

Uzbekistan has signed a production sharing agreement (PSA) with Azerbaijan’s state oil company SOCAR to explore and develop hydrocarbon deposits on the Ustyurt Plateau, Orda.kz reports, citing Gazeta.uz.

The deal, signed on July 24, includes geological surveys and drilling on six blocks — Boyterak, Terengkuduk, Birgory, Kharoy, Karakalpak, and Kulboy. SOCAR will serve as the project operator, with at least $2 billion in planned investment over three phases.

Initial work includes 3D seismic surveys over 1,000 sq. km and the drilling of one exploratory well within five years. If a commercial discovery is made, development and extraction will follow.

Uzbekistan’s state TV noted the project could uncover reserves of 100 million tons of oil and 35 bcm of gas, potentially supplying domestic needs for 25 years.

SOCAR’s involvement signals major international interest in the country’s energy sector.