TASHKENT — The state-owned company Uzbekneftegaz and the Chinese drilling company XIBU (part of CNPC) have signed a contract to drill 30 wells in Uzbekistan in 2026–2027, Gazeta.uz reports.
The new agreement marks a long-term partnership: a total of 105 wells are planned to be drilled by 2029. The document was signed following a working visit by Uzbekneftegaz Chairman of the Board Abdugani Sanginov to China, where negotiations were held with leading players in the Chinese oil and gas industry.
Ten modern drilling rigs, each with a lifting capacity of 450 tons, will be delivered to Uzbekistan to implement the project.
The wells will be drilled in promising areas identified through seismic surveys. Complex geological conditions will require the use of advanced drilling technologies and enhanced safety measures.
Uzbekneftegaz emphasized that the project is aimed at:
- Expanding geological exploration;
- Increasing proven natural gas reserves;
- Strengthening the country's energy security.
The Chinese company already has successful experience in the Uzbek market:
- It constructed 11 production wells at gas fields in the Karakul investment block (Bukhara region);
- Participated in the development of an oil field in the Andijan region.
Previously, Eriell, a company associated with businessman Bakhtiyor Fazylov, served as Uzbekneftegaz's key drilling contractor. Most of the projects were implemented as part of the "Program of Measures to Increase Hydrocarbon Production for 2017–2021."
Amid the ongoing restructuring, the Uzbek government plans to sell the assets of Enter Engineering, Eriell, and Saneg to pay off wage arrears (approximately $131 million), as well as budget and bank liabilities. New strategic investors are planned to be attracted to complete major infrastructure projects—the MTO Mining and Chemical Combine, Bukhara Airport, Tebinbulak, and the Federal Oil Refinery.
Partnerships with Chinese companies possessing technological expertise and financial resources are considered a priority in this transformation.
CentralasianLIGHT.org
March 12, 2026