Editor’s observe: Teymur Atayev is an Azerbaijani publicist, historian, political scientist, and host of this system “Aspects of Foreign Affairs” on the Azerbaijani CBC TV channel (broadcasts in Russian). The article expresses the private opinion of the writer and should not coincide with the view of News.az.
At the tip of final week, the Ministry of Energy of Uzbekistan, SOCAR, and the joint-stock firm Uzbekneftegaz signed a Production Sharing Agreement (PSA) to conduct geological exploration, with a view to subsequent hydrocarbon extraction in funding blocks situated within the Ustyurt oil and gasoline area. The settlement envisions 3D seismic surveys over an space of a minimum of 1,000 sq. kilometers, adopted by the drilling of an exploration properly. If commercially viable hydrocarbon reserves are found, the events will transfer on to discipline growth and manufacturing.
SOCAR President Rovshan Najaf said that the settlement displays a long-term technique for power sector growth in Central Asia and the Caspian area. He emphasised that this cooperation will make a significant contribution to Uzbekistan’s power safety and infrastructure progress. For his half, Uzbekistan’s Minister of Energy Jurabek Mirzamakhmudov described the partnership with SOCAR as a strategic step towards diversifying funding sources and integrating international finest practices. He additionally famous that the Ustyurt area has important untapped potential, and the undertaking will change into an “necessary driver of technological development and financial progress.”
Azerbaijan’s state oil firm SOCAR and Uzbekistan’s Uzbekneftegaz have signed a manufacturing sharing settlement (PSA)
The PSA grants the investor unique rights to hold out oil and gasoline operations, together with exploration, growth, and manufacturing. The investor will recuperate its bills from a portion of the extracted assets, with the remaining profit-based manufacturing to be distributed between the events in agreed proportions.
It is value recalling that the strategic partnership between Uzbekneftegaz and SOCAR started in 2016, when a cooperation settlement was signed that included the coaching of Uzbek specialists at SOCAR. At the identical time, Uzbekneftegaz was anticipated to take part in offshore tasks in Azerbaijan. In 2017, the 2 corporations agreed to implement joint oil and gasoline tasks not solely in Azerbaijan and Uzbekistan but in addition in third international locations. In 2018, along with BP Exploration, they signed a memorandum on joint geological exploration of a number of funding blocks. After BP exited the undertaking in 2021, the 2 sides reviewed new cooperation alternatives, culminating in one other oil and gasoline cooperation settlement signed in 2024.
The newest stage of their collaboration was formalized throughout the official go to of President of Uzbekistan Shavkat Mirziyoyev to Azerbaijan in July 2025, which resulted within the resolution to collectively perform geological exploration on the Ustyurt Plateau.
The signed settlement additional confirms the particular nature of Azerbaijani–Uzbek relations, a sentiment echoed throughout President Mirziyoyev’s current go to to Baku. As the president famous, “Never earlier than in our historical past have our relationships been at such a excessive stage.” This was demonstrated by a sequence of bilateral occasions: the primary Inter-Parliamentary Forum was efficiently held in Khiva, Uzbekistan; in the meantime, Baku hosted periods of the Intergovernmental Commission and the Regional Forum. Earlier, town of Andijan hosted the primary Rectors’ Forum of the 2 international locations, throughout which over 60 agreements have been signed—highlighting the rising significance of cultural and humanitarian ties between Uzbekistan and Azerbaijan. One such cultural milestone was the Azerbaijani ensemble “Shirvan” successful the Grand Prix on the Bakhshi Festival in Khiva.
During President Mirziyoyev’s go to to Baku, a brand new constructing of the Uzbek Embassy was inaugurated, and a symbolic groundbreaking ceremony for the “Uzbekistan” park was held within the prestigious “Ag Sheher” (White City) district—additional illustrating the deepening friendship and mutual respect between the 2 nations.
Uzbek President Shavkat Mirziyoyev (left) with Azerbaijani President Ilham Aliyev (proper).
Economic cooperation can also be gaining momentum: mutual commerce turnover has elevated by 25%, and the funding portfolio has expanded to $4 billion. The quantity of Uzbek cargo transported by way of the Middle Corridor has additionally grown by 25%. The variety of joint ventures has reached almost 300. One of probably the most promising joint initiatives is a undertaking to export electrical energy to Europe.
President of Azerbaijan Ilham Aliyev has emphasised that the 2 international locations share deep historic, cultural, and linguistic roots, forming a strong basis for the flourishing Azerbaijani–Uzbek brotherhood.
Industrial and funding cooperation is increasing as properly. The Ministry of Innovation, Industry, and Trade (MIIT) of Uzbekistan has partnered with a number of Azerbaijani building corporations to launch the manufacturing of constructing supplies and residential housing tasks in Namangan. Cooperation can also be advancing within the manufacturing of dairy merchandise, family chemical substances, and high-voltage cables. Notably, Azerbaijani firm Agalarov Development signed an settlement with MIIT to develop a resort space within the Bostanlyk district of Tashkent Region—a undertaking anticipated to considerably contribute to tourism infrastructure and job creation.
In this context, the lately signed settlement on SOCAR’s geological exploration actions within the Ustyurt area clearly matches inside the distinctive and steadily strengthening understanding between Tashkent and Baku. This relationship is rising not solely on a bilateral stage but in addition inside the framework of the Organization of Turkic States and different worldwide platforms.
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