BP Takes 40% Stake in Uzbek Oil and Gas Exploration Blocks

BP has acquired a 40% participating interest in a production sharing agreement for six oil and gas blocks in Uzbekistan, the company said on Wednesday. The UK supermajor bought 20% from Azerbaijan's state energy firm SOCAR and 20% from Uzbekistan's national firm Uzbekneftegaz. After the transaction, the participating interests are BP 40%, Uzbekneftegaz 30%, and SOCAR 30%.

SOCAR remains the operator of the PSA after BP's entry. The six blocks are Boyterak, Terengquduq, Birqori, Kharoy, Qoraqalpoq, and Qulboy. They are located in the North Ustyurt region of Uzbekistan. SOCAR and Uzbekneftegaz started advancing a $2-billion energy project in the six blocks last year.

"We believe Uzbekistan has significant resource potential and see this as an opportunity to support the exploration and development of the country’s oil and gas resources, delivering long-term benefits to the region," Gio Cristofoli, BP regional president for Azerbaijan, Georgia and Türkiye, said in a statement.

The announcement reflects BP's sharpened focus on its core oil and gas business. BP's new chief executive officer is Meg O'Neill.

Under Bernard Looney in 2020, BP pledged to boost renewables and reduce oil and gas production. Last year, BP under Murray Auchincloss announced a major strategy reset to slash investments in renewables and focus on its core oil and gas business. com reported that the move came after Looney’s abrupt exit and his replacement with Auchincloss made investors anxious about the direction of the company, especially after the Russian invasion of Ukraine and the energy crisis that followed highlighted the continued need for oil and gas.

BP has bought 40% in the production sharing agreement regulating oil and gas exploration and production rights for six blocks in Uzbekistan, setting foot in the Central Asian country as it continues to seek profitable opportunities to boost its oil and gas business.