Uzbekneftegaz may join Shah Deniz project


Uzbekneftegaz and the State Oil Company of Azerbaijan (SOCAR) may sign an agreement in the coming months on the entry of an Uzbek company into the Shah Deniz project, Uzbekistan's Minister of Investment, Industry and Trade Laziz Kudratov said, according to Report.

“We are negotiating with SOCAR regarding its participation in oil and gas production projects in Uzbekistan. Similarly, the issue of Uzbekneftegaz’s entry into gas production projects is now being discussed and is at the final stage,” he noted.

Kudratov answered affirmatively when asked by journalists whether this meant the Shah Deniz project.

Kudratov also noted that the issue of the share is still being discussed, this is the subject of negotiations. “We hope that this will happen soon,” he added, answering a question about the timing of signing the agreement.

At the same time, the minister added that a state visit to Uzbekistan by Azerbaijani President Ilham Aliyev is being prepared. “Of course, we aim to ensure that this visit is filled with specific content,” he said.

He added that the project is complex, requires legal expertise, and foreign consultants are also involved in this process. “But we are optimistic about the prospects,” the minister emphasized.

It should be noted that the agreement on exploration, development and sharing of production from the promising Shah Deniz field was signed on June 4, 1996, and ratified on October 17, 1996. In 2013, the agreement on the development of the Shah Deniz field was extended from 2036 to 2046.

The companies participating in the project are BP (operator - 29.99%), Lukoil (19.99%), TPAO (19%), NIKO (10%), SGC Upstream (21.02%).