SOCAR and Uzbekneftegaz to set up joint venture

Tashkent, November 22 - Neftegaz.RU. Azerbaijan’s SOCAR and Uzbekneftegaz will create a joint venture to carry out trading operations in Europe and other countries, Uzbekneftegaz informed on its website.

“This issue was discussed on November 20, during the meeting of SOCAR, SOCAR Trading and Chemtrade at Uzbekneftegaz. The parties discussed promising areas of cooperation in the field of creating a joint venture to carry out trading operations,” the report says.

The meeting was organized as part of the agreements reached in October 2019 following the visit of Uzbekneftegaz’s Board Chairman, Bakhodir Sidikov to Baku. Following the meeting, further steps were identified for the establishment of a new joint venture.

The joint venture will become a new direction for Uzbekneftegaz, which will allow it to explore export markets of Europe, as well as other countries that do not have direct transport corridors with Uzbekistan.

During the visit to Baku of a delegation consisting of Uzbekistan's 1st Deputy Energy Minister, Zhurabek Mirzamakhmudov and Uzbekneftegaz’s Board Chairman, Bakhodir Sidikov held negotiations with SOCAR President Rovnag Abdullayev. The sides discussed the possibility of increasing the oil and export potential of Uzbekistan’s gas and chemical products with SOCAR Trading.

SOCAR is currently cooperating with Uzbekneftegaz within the framework of an agreement signed in May 2019 with BP Exploration on geological exploration at three investment blocks in Uzbekistan. The document provides for exploration in the Uzbek part of the Aral Sea, the Samsk-Kosbulak and Bayterek investment blocks of the Ustyurt region.

Uzbekneftegaz and SOCAR also signed an agreement to increase hydrocarbon production in 4 fields using the advanced technologies of the Azerbaijani company.

In 2016, SOCAR and Uzbekneftegaz signed a Memorandum providing for cooperation in the field of exploration and development of oil and gas fields and other potential areas for the development of the energy sector.

Moreover, SOCAR and Uzbekneftegaz reached an agreement on joint oil and gas operations in Azerbaijan and Uzbekistan, as well as in third countries in June 2017.