The government authorities in Uzbekistan have officially revoked the subsurface use licenses previously granted to Sanoat Energetika Guruhi (Saneg) for numerous oil fields. According to the State Assets Management Agency (SAMA) Director Sohibjon Muradov, the permits were cancelled due to the systemic failure to meet mandatory licensing terms and the inability of the enterprise to effectively bring the resource sites into active economic circulation.

This controversial development comes to light following persistent questions regarding the opaque mechanisms under which valuable state-owned oil fields were handed over to private entities without conducting transparent public auctions or competitive tenders. While the SAMA chief asserted that the mineral deposits themselves were not legally privatized, the withdrawal of licenses highlights severe shortcomings in fulfilling prior contractual commitments, prompting the Ministry of Geology to formulate new strategies for resource management.

The transfer of over 100 oil and gas fields from the state-owned holding Uzbekneftegaz to Jizzakh Petroleum (later rebranded as Saneg) took place in 2019 via a closed government resolution. The ambitious project promised billions of dollars in foreign investments, extensive drilling operations, and a significant boost in domestic petroleum extraction. However, independent audits and working groups repeatedly warned that the targeted fields contained hard-to-recover reserves, casting serious doubt on the economic feasibility and long-term returns of the venture.

Furthermore, the initial handover of these strategic assets has become a central point in ongoing criminal investigations involving former top executives of Uzbekneftegaz, where investigators allege significant financial discrepancies and undervaluation of state property. In response to mounting fiscal pressures and operational difficulties, the Uzbek government has increasingly moved to reassess and restructure major industrial holdings associated with private domestic capital.

Source: www.gazeta.uz