The Ustyurt Plateau could provide Uzbekistan with something it urgently needs: more domestic natural gas. Exploration of the prospective block is nearing completion, with the first production wells scheduled to be drilled next year. The timeline was announced by Azerbaijani President Ilham Aliyev following his visit to Tashkent.
The three-party partnership took shape gradually. The process began in August 2024, when Baku and Tashkent agreed to cooperate on gas exploration. A year later, the parties signed a production sharing agreement (PSA) providing for 3D seismic surveys across an area of more than 1,000 square kilometers and the drilling of one exploration well. In May 2026, UK-based BP officially joined the project, taking over operatorship and acquiring a 40% stake. Uzbekneftegaz and SOCAR each retain 30%.
The stakes are high for Uzbekistan. Domestic natural gas production has been declining as mature fields are depleted. June output totaled just 2.5 billion cubic meters, down 30% from a year earlier. The first-half figure was also weak at 18.3 billion cubic meters, a 16% year-on-year decline. Until recently, Uzbekistan produced around 70 billion cubic meters of gas annually, but by 2025 output had fallen to approximately 42 billion cubic meters.
The production shortfall has been offset by imports. During the first six months of the year, Uzbekistan spent $972 million on pipeline gas and liquefied petroleum gas (LPG), 1.4 times more than during the same period a year earlier. The main suppliers are Russia and Turkmenistan. When domestic demand falls seasonally, surplus gas is exported, primarily to China.
For Uzbekistan, Ustyurt is effectively the country’s biggest remaining opportunity to reverse the negative trend in natural gas production. If exploration results confirm the expected reserves and the 2027 drilling program proceeds as planned, Uzbekistan could reduce its dependence on imported gas and restore its position as a major gas-producing country.
Source: dprom.kz
Image: Uzbekneftegaz
