London Politica Analyst Says BP’s Return to Uzbekistan Sends Strong Signal to Global Investors
British energy giant BP’s return to Uzbekistan is a strong signal for global investors, according to Alexander Smotrov, head of the international department at London Politica, speaking to Kursiv Uzbekistan.
«This will be BP’s first major project in Uzbekistan. The company has revised its strategy and is returning to traditional oil and gas production. Ustyurt fits perfectly into this direction, it is a region with untapped resources, government support and reliable partners such as SOCAR, with whom BP has long cooperated. All the conditions for success are there, now everything depends on implementation,» Smotrov said.
According to the analyst, BP’s move is important not only for the company itself, but also for Uzbekistan’s broader investment image.
«The return of a player like BP can be viewed as evidence of growing interest from Western companies in Uzbekistan’s oil and gas sector. Authorities have announced plans to accelerate the privatisation of state assets in the energy sector. If this process moves faster, BP’s arrival will become a landmark signal for other investors, confirming confidence in the country’s economic policy and stability,» he noted.
Earlier, BP signed a production sharing agreement (PSA) covering six blocks on the Ustyurt Plateau. The deal includes the Boyterak, Terengkuduk, Birkori, Haroy, Karakalpok and Kulboy fields and exploration areas.
The project also involves SOCAR and Uzbekneftegaz. Ownership shares are распределены as follows: BP — 40%, SOCAR — 30% (operator), and Uzbekneftegaz — 30%.
The total investment volume is estimated at around $2 bn. BP will focus on geological exploration and future hydrocarbon production.
BP exited the project in 2021 amid its shift toward green energy policies, but the company is now once again prioritizing oil and gas development.
