Uzbekneftegaz and Azerbaijan’s SOCAR have launched a joint project to explore and extract hydrocarbons in the Ustyurt region of Karakalpakstan. Azerbaijani Energy Minister Parviz Shahbazov said the venture underlines the strategic importance of energy cooperation, fostering knowledge sharing, technology exchange and regional energy integration.
The agreement for joint development and production was signed earlier this year, stipulating that extracted resources will be shared between Tashkent and Baku. Geological surveys and drilling of at least one well are expected to be completed within five years. In early December, the Ustyurt Operating Company opened its office in Tashkent to manage operations on the plateau, with rapid registration confirmed by Azerbaijani authorities.
The project involves an estimated $2 bn in investment. The Ustyurt region is believed to hold around 35 bn cubic metres of gas and 100 mln tonnes of oil. British oil giant BP has also expressed interest in the development.
