Uzbekneftegaz: new wells not yet offsetting the decline in gas production

Production continues to decline

Gas production at Uzbekneftegaz's large fields continues to shrink, and new wells have so far failed to offset the decline. This was stated by the company's chief geologist Nodir Mukhiddinov at a press conference on October 27, Gazeta reports. According to him, one of the main reasons is the high degree of depletion of fields that have been operated for many years: at some sites, more than 80% of reserves have already been extracted.

Annual figures and daily indicators

In January–September 2026, Uzbekneftegaz and its subsidiaries produced about 17 billion cubic meters of gas. By the end of the year, the company expects to bring the figure to 22.8 billion cubic meters, compared with 25.2 billion in 2025 — meaning annual production could fall by 2.4 billion cubic meters, or 9.5%.

What is happening with daily production

According to Mukhiddinov, at the beginning of the year daily production stood at about 65 million cubic meters. Since then, the decline in base production at operating fields has reached 12.6 million cubic meters per day. Part of this volume was recovered through well workovers and the commissioning of new wells, but about 5 million cubic meters per day remain uncompensated. The company plans to return to the level of the beginning of the year by year-end; since the start of the year, 79 wells have undergone major and routine repairs. Plans also include launching wellhead compressor stations that maintain production as reservoir pressure declines, and restoring wells taken out of operation, including by drilling sidetracks.

Hopes are pinned on Ustyurt

The company sees the greatest potential for discovering new reserves in the Ustyurt region, but developing new fields is becoming increasingly difficult and expensive: whereas fields were previously discovered at depths of 3,000–3,500 meters, work is now underway at depths of more than 5,000 meters, where pressure can reach 1,000 atmospheres and temperatures 200 degrees. This requires special equipment that only a limited number of companies in the world possess, the chief geologist noted.

Exploration is growing, production is not

In 2026, Uzbekneftegaz obtained licenses for 42 new investment blocks and plans to increase seismic exploration nearly fivefold, to 11.9 thousand square kilometers. Over nine months, exploration work began at 17 new sites, with plans to bring the number to 22 by year-end. Reserve additions for the reporting period amounted to about 12.5 billion cubic meters, against an annual target of 25 billion. The company emphasizes, however, that an increase in proven reserves does not equal an increase in production: industrial operation requires wells, confirmation of their productivity, and infrastructure.

Context: years of decline and falling short of targets

The decline in production is taking place against the backdrop of long-standing problems in the industry. According to the National Statistics Committee, gas production in the country fell from 53.8 billion cubic meters in 2021 to 46.7 billion in 2023; in 2024, according to revised data, 41.3 billion was produced, and in 2025 — 42.3 billion. Gazeta previously notedthat the 2024 statistics were revised, lowering the figure by 3.3 billion cubic meters, which changed the assessment of the 2025 trend. In January–September 2026, production across the country totaled 27 billion cubic meters, compared with 32.3 billion a year earlier — a decline of 16.4%. National figures include not only Uzbekneftegaz but also other companies in the industry.