BAKU, Azerbaijan, December 23. Uzbekneftegas plans to develop a unified development strategy that will integrate all areas of the company’s operations, along with a detailed implementation program, TurkicWorld reports via the company.
The announcement was made during a meeting attended by Abdugani Sanginov, Chairman of the Board of JSC Uzbekneftegas, where discussions centered on outlining both the short-term and long-term development strategy for Uzbekistan’s oil and gas sector.
To ensure sustained growth, enhance operational efficiency, and implement reforms focused on value creation, the company has identified key strategic priorities. These priorities are designed not only to guide the sector’s development but also to ensure the timely and effective execution of objectives set forth by the country’s leadership.
In its upstream operations, Uzbekneftegas intends to move away from the practice of prioritizing output volumes and instead adopt a value-based, profitability-driven approach. The economic efficiency and profitability of each field will become the primary performance metrics.
As part of this shift, the company stressed the importance of cost optimization, with plans for a 20% reduction in the cost and regulatory standards for activities such as project design, geophysical surveys, geological exploration, and drilling.
Expenditure on geological exploration and drilling will be reassessed, focusing on cost efficiency and capitalization strategies that aim to improve overall operational effectiveness.
A key focus will be placed on the deep processing of natural gas. Notably, the expansion of the gas-to-liquids (GTL) plant is expected to significantly increase the production of high-margin finished products, reduce imports, and bolster the country’s export capabilities.
To ensure full financial transparency, Uzbekneftegas will introduce International Financial Reporting Standards (IFRS), conduct an inventory of its procurement system, and take steps to limit the use of direct contracts.
The company also plans to significantly reduce its debt burden through more effective credit management, debt optimization, and the development of a financial model for 2026, which is expected to strengthen its financial stability.
Following the meeting, it was noted that the implementation of these measures will contribute to the sustainable development of Uzbekistan’s oil and gas sector and support the transformation of JSC Uzbekneftegas into a modern, efficient, and competitive company. To ensure the execution of these objectives, the company announced the launch of an updated 100-day action plan.
