President Shavkat Mirziyoyev reviewed a presentation on January 12, outlining the future goals and development plans of Uzbekneftegaz, with a focus on increasing production, strengthening resource reserves, and improving financial and governance practices in the oil and gas sector.
The presentation highlighted that ensuring energy security and uninterrupted energy supplies to key sectors of the economy remains a priority for Uzbekistan’s development. In this context, particular attention is being given to raising productivity, expanding the use of modern technologies, and intensifying geological exploration activities in the gas industry.
Uzbekneftegaz’s main strategic objective is to increase natural gas reserves and boost production volumes. As per to the plans presented, the company aims to raise daily gas production from the current 66mn cubic meters to 70mn cubic meters. In addition, it is planned to produce at least 25.4bn cubic meters of natural gas during the year. Proposals aimed at making more effective use of existing production capacities were also reviewed during the meeting.
To expand gas reserves, the need to establish new promising investment blocks was emphasized, along with accelerating work and improving efficiency at sites already allocated to investors. These measures are intended to enhance exploration outcomes and attract greater investment into the sector.
The presentation also addressed the utilization of naphtha production capacity, which is currently operating at about 70%, while exports of naphtha are reportedly priced at levels notably below the potential value of processed products. It was noted that processing naphtha into polymer products can increase added value by up to six times. In this regard, instructions were given to take measures to ensure full utilization of existing capacities and to expand deeper processing.
Issues related to improving the financial condition of Uzbekneftegaz were also discussed. Particular attention was paid to strengthening financial discipline and ensuring more efficient management of resources.
The meeting additionally focused on measures to combat theft and corruption within the oil and gas industry. To mitigate corruption risks, a separate position of deputy chairman has been introduced in the company’s structure, and a compliance and internal anti-corruption control service has been established. These measures are intended to create an effective system for the timely detection and prevention of legal violations in the sector.
Following the presentation, President Mirziyoyev issued instructions to responsible officials to continue deepening reforms in the oil and gas industry, increase gas reserves and production volumes, and further strengthen financial and governance discipline at Uzbekneftegaz.
Earlier Daryo reported that, Uzbekneftegaz is considering measures to reduce inefficient oil depot assets after a board meeting chaired by Abdugani Sanginov, the company reported.
Oil depots manage 441 fuel distribution points, of which 234 are operational and 207 are inactive. A total of 156 inactive facilities have been offered for sale, but 130 have remained unsold for over three years despite a 50% price reduction. The inactive assets cost the company about UZS 11.5bn ($954,500) annually, while the operating facilities remain low-profit.
