Uzbekistan - Oil and Gas IndustryUzbekistan-Oil-and-Gas
Overview
Mining, quarrying, and oil and gas are the leading industries of Uzbekistan’s economy, despite the sector’s ever more pressing need for further development. The country’s hydrocarbon reserves are significant; according to local industry officials, total primary energy reserves (proved and projected) amount to 5.5 billion tons of oil equivalent (toe), including 1.5-1.6 billion toe of natural gas, 245 million toe of oil and up to 3.3 billion toe of coal. The industries are contributing about 16 percent to the GDP of the country, over 20 percent to the state budget earnings, 40 percent of export earnings, and employing nearly 180 thousand people. Uzbekistan is the second largest natural gas producer in Central Asia. Accordingly, energy issues remain a high priority in President Mirziyoyev’s agenda. Despite a breakthrough in improving energy cooperation with regional neighbors, interrupted and insufficient electricity and gas supplies remain an issue. A number of measures undertaken by the government in 2017-2018 improved the problem of energy shortages and outages in the economy and set out main objectives for sector development. The government has initiated a number of new large development projects to address the energy insufficiency situation in the country. Last year the government contracted with American consulting firms McKinsey & Company and Boston Consulting Group to develop recommendations for the development of the oil and gas industry and attraction of foreign investors to implement exploration, development, production and processing projects.
2016 | 2017 | 2018 | 2019 estimated | |
Total Local Production | 7,091 | 5,830 | 6,350 | 7,200 |
Total Exports | 1,714 | 1,920 | 2,666 | 3,100 |
Total Imports | 589 | 742 | 879 | 1,400 |
Imports from the US | 4.5 | 12 | 17 | 25 |
Total Market Size* | 5,966 | 4,652 | 4,563 | 5,500 |
Exchange Rates** | 2,965 | 5,121 | 8,100 | 8,500 |
** Exchange Rates = Uzbek sums per $1
Units: $ millions
Source: The State Statistics committee of Uzbekistan. Data for 2019 was estimated by Post using company project implementation progress reports. Imports from the U.S. data is from the U.S. Census Bureau.
Leading Sub-Sectors
Oil and Gas Extraction, Support Activities for Mining: U.S. oil and gas companies may bid on contracts to supply services to the country. Specific fields include consulting, engineering, construction, equipment supply, and management. The government presently has an increased interest in licensing technologies for oil refining and gas extraction, treatment and processing. All public sector tenders and technical requirements, specifications, documents, and procedural explanations are available on the website of Uzbekneftegaz Company: www.ung.uzOpportunities
For specific opportunities, businesses should review tenders via the Internet or contact companies already involved in Uzbekistan’s oil and gas sector. In general, opportunities exist in developing and exploring fields; analyzing oil and gas-bearing structures; seismic surveys and deep drilling; and joint exploration and development of new fields and deposits.
Web Resources
U.S. companies and individuals interested in learning more about the oil and gas sector, upcoming procurement and export opportunities are encouraged to visit the following websites:-
- Uzbekneftegaz National Holding Company: www.ung.uz
- Ministry of Investments and Foreign Trade of Uzbekistan: www.mift.uz
- ITE Uzbekistan Exhibition Company: www.ite-uzbekistan.uz
- Governmental Portal of the Republic of Uzbekistan: www.gov.uz
- Chamber of Commerce and Industry of Uzbekistan: www.chamber.uz
- U.S. Embassy in Uzbekistan: http://uzbekistan.usembassy.gov/business.html