Uzbekneftegaz: no field discovered in Ustyurt yet, SOCAR and BP project at exploration stage

There is no field yet

The joint project of Uzbekneftegaz, Azerbaijan's SOCAR and Britain's BP on the Ustyurt plateau remains at the geological exploration stage, and no field has been discovered there so far. This was stated by Uzbekneftegaz's chief geologist Nodir Mukhiddinov at a press conference on October 27, answering journalists' questions about the prospects for increasing oil and gas production in the region, reports Gazeta.

What has been done and what lies ahead

According to Mukhiddinov, seismic survey work has already been carried out over an area of more than 3,000 sq. km under the project. «The drilling of one well is planned for next year. A re-analysis of geological data is currently underway,» he noted. According to assessments by SOCAR and BP specialists, the prospects for discoveries are linked to deep strata at a depth of about 5,000 meters; however, the chief geologist emphasized that «only after drilling a well and discovering a field will it be possible to carry out further calculations.» He could not name the estimated production cost: only the seismic survey expenses are known, and the cost of drilling an exploration well has yet to be determined.

The price of depth

Uzbekneftegaz pins its main hopes for gas production growth precisely on the Ustyurt region, but developing deep horizons requires complex technologies and large expenditures. «In the past, we discovered fields at depths of up to 3,000–3,500 meters. Now the fields we discover lie at depths of more than 5,000 meters,» Mukhiddinov explained. According to him, at such depths the pressure can reach 1,000 atmospheres and the temperature 200 degrees, and only a limited number of companies in the world work with the technologies required for this, which raises the cost of both exploration and subsequent production.

Project context and the status of forecasts

The production sharing agreement for six blocks in Karakalpakstan («Boyterak», «Terengkuduk», «Birkori», «Haroy», «Karakalpak», «Kulboy») was signed by the Ministry of Energy, Uzbekneftegaz and SOCAR on July 24, 2025; in May 2026 the project was joined by BP, after which the shares were distributed as 40% for BP and 30% each for SOCAR and Uzbekneftegaz, with SOCAR acting as exploration operator. In July 2025, the Uzbekistan 24 TV channel reported possible investments of about $2 billion and preliminary estimates of reserves of up to 100 million tons of oil and 35 billion cubic meters of gas, while the Ministry of Energy stated that the project could cover the country's oil needs for 25 years. Gazeta emphasizes: these are preliminary forecasts, not proven reserves — they can only be clarified through exploratory drilling. Mukhiddinov's statement effectively confirms that since the signing of the PSA the project has not advanced beyond exploration: field work on 3D seismic surveys across all six blocks was completed in September, while drilling, which in June 2026 the chairman of the board of Uzbekneftegaz Abdugani Sanginov proposed to begin before the end of 2027, has only been scheduled for next year.

Background: declining production

Work in Ustyurt is underway against the backdrop of a continuing decline in gas production in Uzbekistan. At the same press conference, Mukhiddinov reported that at some of the company's large fields more than 80% of reserves have already been extracted, and new wells are not yet compensating for the natural decline in production at older sites. The results of exploratory drilling will show whether there are commercial reserves in the area and how justified their development would be.