Uzbekneftegaz refused to disclose the cost of the contract for eliminating the M-25 accident

The contract value — under a non-disclosure agreement

Uzbekneftegaz refused to disclose the amount of its contract with China's CCDC for eliminating the accident at the '25 Years of Independence' gas field (M-25) in the Baysun district of Surkhandarya region. According to company representatives at a press conference on October 27, a non-disclosure agreement (NDA) has been signed between the companies, and disclosing the figures requires the consent of the other party. This was reported by Gazeta.

Why the Chinese company was chosen

The company's chief geologist, Nodir Mukhiddinov, said, that proposals from companies from the US, China and Russia with experience in complex wells were considered for eliminating the accident. Specialists of Uzbekneftegaz and invited consultants deemed the proposal of CCDC, part of the state corporation CNPC, the most suitable: the technological solution, timelines, risks, cost and experience in eliminating similar accidents in nearby regions were taken into account. Deputy chairman of the board Abrorjon Khudoyberganov assured that 'there is no artificial inflation of the cost here,' and the decision was made after expert reviews and conclusions from state organizations. Press secretary Mumin Ibodov added that board chairman Abdugani Sanginov repeatedly sent contractors' proposals back for revision due to price or non-compliance with requirements. Work has already begun, including the delivery of equipment.

Timeline of the accident and stated deadlines

An uncontrolled release of gas with a high hydrogen sulfide content occurred at well No. 604 on September 1, 2024, during drilling operations; according to the Ministry of Emergency Situations, the cause was a violation of the technological process, and residents of nearby settlements were evacuated. On September 15, 2024, the company Eriell announced the completion of well killing, but on September 17 a second blowout occurred, as a result of which four employees of the contractor died. The reservoir pressure at M-25 reaches 65 MPa (about 650 atmospheres), the temperature is 150 degrees, which requires special corrosion-resistant equipment. In March 2025, a hydrogen sulfide release also occurred at well No. 202; the gas was set on fire to prevent its spread.

What is known about the project and what remains unknown

M-25 is one of the largest undeveloped gas fields in the country, with reserves previously estimated at more than 150 billion cubic meters. In 2017, the government signed a production sharing agreement with a consortium of investors; the total cost of the project was estimated at $5.8 billion, of which $2.9 billion was for a gas processing complex with a capacity of 5 billion cubic meters per year. The operator is Surhan Gas Chemical Operating Company, drilling was carried out by Eriell, and construction of the complex by Enter Engineering. By November 2023, about $1.45 billion had been invested in development, and 20 wells had been drilled.

Timelines and open questions

In June 2026, Sanginov said that the complete elimination of the accident is planned to be completed in the first half of 2027, for which four additional wells will need to be drilled; settlements with Chinese partners will be in cash, and the transfer of natural resources as payment is not envisaged. On August 15, 2026, the company announced the official start of practical work on closing well No. 604 near the village of Kofrun: by the end of 2026, more than 40 units of special equipment are to be delivered from China, drilling is scheduled for January 2027, with completion by July 2027. On October 20, Sanginov discussed the progress of the work with CNPC management. In February 2026, President Shavkat Mirziyoyev stated that a technological solution for eliminating the accident had been found. At the same time, as Gazeta notes, the cost of eliminating the consequences, the total expenditures on emergency work since September 2024, and an estimate of the volume of lost gas have still not been published.