Uzbekistan Establishes New Drilling Company to Expand Oil and Gas Development

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UNG Burg'ilash LLC has been established within Uzbekneftegaz JSC. It will focus on drilling oil and gas wells and developing national deep-drilling expertise, Daryo.uz reported.

The company aims to accelerate exploration of promising fields, primarily on the Ustyurt Plateau, and eventually expand its drilling and service offerings to neighboring countries and international markets.

To ensure a full cycle of operations, 21 modern drilling rigs are planned for delivery. The equipment will be equipped with digital control systems and capable of drilling wells up to 9,000 meters deep in challenging geological conditions, including high pressures and temperatures. The first deliveries are expected in October 2026. Cementing, well testing, nitrogen and compressed gas handling equipment, as well as specialized vehicles, are also planned for purchase.

UNG Burg'ilash plans to staff its operations according to international standards, attracting qualified engineers and specialists with international experience. The company also intends to collaborate with leading international oilfield services companies in the areas of drilling fluids, geophysical surveys, drill bits, and well testing. The project is expected to create over 1,000 jobs.

The creation of a specialized drilling company comes amid intensified exploration work in Uzbekistan. Drilling has previously commenced at the first well of the Kyzylzhar field in Ustyurt, with the participation of the Chinese company XIBU.

The creation of UNG Burg'ilash is significant not only for expanding drilling capacity but also for the technological transformation of Uzbekistan's oil and gas sector. Deep drilling is one of the most capital-intensive and technologically complex stages of field development, particularly in Ustyurt, where a significant portion of promising resources are located in complex geological conditions.

The transition to a domestic, modern drilling infrastructure could reduce dependence on foreign contractors, accelerate exploration, and ensure the development of national engineering expertise. At the same time, cooperation with international service companies will allow Uzbekistan to more quickly implement modern technologies without sacrificing external expertise.

UNG Burg'ilash's focus on the external market is particularly important. If the company can develop the necessary technological and personnel expertise, Uzbekistan will potentially gain a new oilfield services export segment—from drilling to comprehensive well servicing. This will mark a transition from a primarily resource-based model of participation in the oil and gas industry to the export of specialized services and technologies.

The project also has an industrial multiplier effect for the country's economy. The purchase of drilling rigs, the development of service infrastructure, the training of engineers, and the creation of over 1,000 jobs can stimulate related industries—mechanical engineering, transportation, equipment manufacturing, and professional services.

At the same time, the effectiveness of the new structure will depend on how quickly it can ensure the utilization of expensive equipment and obtain international certifications and competencies. Therefore, combining its own capacities with partnerships with leading global oilfield services companies appears to be the most rational model at the initial stage.

If successfully implemented, UNG Burg'ilash could become not just an internal drilling division, but the foundation for a competitive national oilfield services company.

CentralasianLIGHT.org

July 31, 2026