President Shavkat Mirziyoyev announced on 16 October that 128 new investment blocks have been prepared for oil and gas exploration across several regions of the country, with estimated reserves of 5.8 trillion cubic metres of gas and 560 million tonnes of liquid hydrocarbons. The announcement came during an open dialogue with investors in the fuel and energy sector, where the president also set a national deadline of end-2027 for transferring propane supply services entirely to private business.
Mirziyoyev stated that competition, transparency, and efficiency would be the primary criteria governing the development of the newly prepared blocks. The scale of the offering represents a significant expansion of the country’s upstream investment programme, which currently includes active exploration at six blocks on the Ustyurt Plateau involving SOCAR and British Petroleum.
Propane Market Reform
The liquefied gas market, which serves 3.8 million subscribers and was previously under state monopoly control, is now being opened to market competition. A pilot project in the Andijan region will be the first to bring private operators into propane delivery to households, with the government aiming to complete a nationwide handover to the private sector by the end of 2027.
The reform marks a structural shift in a segment of the energy market that has historically been insulated from private competition. No specific regulatory mechanism for the transition was detailed at the dialogue, but the phased approach — beginning with a single regional pilot before a national rollout — suggests a staged liberalisation rather than an immediate full privatisation.
Downstream Processing Priorities
Alongside upstream exploration, Mirziyoyev emphasised the importance of deep gas processing to generate higher-value products. He cited the Uzbekistan GTL complex in Kashkadarya, which has a production capacity of up to 1.5 million tonnes of liquid fuel per year, as a model for the kind of downstream investment the government is seeking to attract.
Additional industrial projects highlighted at the dialogue include the construction of a methanol-to-olefins polymer complex in Bukhara region and the ongoing modernisation of the Bukhara and Fergana oil refineries. Work at the Fergana refinery has focused on increasing output and improving the facility’s financial position. The president indicated that investors are expected to bring economically justified proposals built on new technologies and meeting environmental standards.
Workforce Development
The dialogue also addressed the shortage of qualified personnel for energy projects. Mirziyoyev pointed to ACWA Power as an example of an investor that has equipped technical colleges in Karakalpakstan, Bukhara region, and Syrdarya region to train hundreds of young Uzbeks annually in new energy specialisations. Other investors were invited to establish similar training programmes aligned with international standards.
From 2027, university admission quotas for energy-related specialisations will be increased. Additionally, 50 state-funded grants per year will be made available for young people to study at leading international universities in energy fields.
