The Uzbek government has initiated a deep audit of private and foreign companies operating in the oil and gas sector, focusing on their compliance with license obligations and project documentation. This was announced by Nodir Muhiddinov, chief geologist of Uzbekneftegaz, at a press conference on April 20. He stated that special working groups, organized by the Ministry of Energy, Ministry of Mining and Geology, the Accounts Chamber, and Uzbekneftegaz specialists, are examining how well companies adhere to their commitments in geological exploration work.
According to Muhiddinov, the audit results will lead to proposals for strengthening oversight and improving the efficiency of cooperation with foreign companies. He said, "Proposals are being prepared to enhance the efficiency of work with licensed foreign companies, establish control over the fulfillment of obligations, and fulfill tasks set before the state." These measures aim to improve the management of the country's oil and gas resources amid ongoing challenges in the sector.
Earlier, in March, Behzot Narmatov, deputy head of the project office for accelerating reforms in the oil and gas sector under the presidential administration, reported that a meeting with the head of state discussed the activities of private and foreign companies in the industry. He noted that information was provided on companies operating in Uzbekistan and managing nearly 25% of reserves, with instructions given to analyze their operations and boost efficiency.
In a related move, Uzbekneftegaz head Abdugani Sanginov ordered the suspension and renegotiation of all contracts with service and servicing companies working with the firm. Press secretary Mumin Ibodov stated that if contracts do not reduce prices by 20-25% after recalculation, cooperation will cease. This step is part of efforts to cut costs and increase economic efficiency, reflecting broader pressures in the sector.
Uzbekistan's oil and gas industry has faced significant difficulties in recent years. Gas production fell from 53.8 billion cubic meters in 2021 to 42.3 billion cubic meters by the end of 2025, a decline of 21.3%. This drop highlights issues in resource management under long-term agreements with foreign entities such as Lukoil, Uz-Kor Gas Chemical, and Surhan Gas Chemical. The government has signed product-sharing agreements with Russian companies Lukoil and Gazprom since 2004, as well as with Korean firms for joint projects, but their effectiveness remains under scrutiny amid the sector's struggles.
Source: www.gazeta.uz