Business Environment

Oil and Gas Industry

Modern oil and gas industry of Uzbekistan is one of the largest industries of economy, the most important energy base of the country. The industry has significant science and technology potential, achieved certain success in its development.

For the years of Independence, Uzbekistan experienced stabilization and then dynamic development of oil and gas industry. In 1995, Uzbekistan achieved self-sufficiency in oil and stopped import of oil. Achieving energy self-sufficiency was carried out despite deep economic crisis in the FSU republics, breakup of economic and trade links, increase of prices and intensification of inflation.

Sub-soils of Uzbekistan contain huge reserves of hydrocarbon resources. About 60% of the territory of the country is prospective for oil and gas. In five oil-and-gas-bearing regions of Uzbekistan, 211 deposits of hydrocarbon resources have been discovered: 108 – gas and gas-condensate, 103 oil-and-gas, oil- and-gas-condensate and oil. More than 50% of deposits are under exploitation, 35% prepared for development, others are continuing prospecting works.

Oil and gas industry of Uzbekistan, is satisfying the energy field of the country for 96% through supplies of primary fuel resources. The annual production of hydrocarbon resources in Uzbekistan is about 86 million tons of conventional fuel. Only 25% of produced resources are exposed to refining, thus producing 250,000 tons of liquefied gas and 125,000 tons of polyethylene. Export potential of all produced gas today constitutes US$ 1.4 billion, creation of refining/processing capacities into finished products (polyethylene, polypropylene and other petrochemicals) will allow to add the value to the production and increase it 10 times.

Enterprises of oil and gas industry are united into the National Holding Company Uzbekneftegas: It’s 6 joint stock companies: Uzgeoburneftegazodobycha (production of oil and gas), Uztransgaz (transportation), Uznefteproduct (refining, processing), Uzneftegazmash (production of technological equipment for the industry), Shurtan gas and chemicals complex (production of polyethylene, liquefied gas, sulphur and sales gas).

Energy Sector

Currently, over 50 percent of generating capacities of the Central Asian United Energy System are concentrated in Uzbekistan. This system also includes energy systems of Turkmenistan, Tajikistan, Kyrgyzstan, and Southern Kazakhstan.

The State Join Stock Company Uzbekenergo is a regulatory body of the electric energy and coal industry. At this stage, the company is comprised of 54 enterprises and organizations in charge of design, construction and assembly, operation and maintenance. The industry is staffed with over 55,000 people.

The installed capacity of the country’s power stations amounts 12.4 million kW (including SJSC Uzbekenergo – 12.0 million kW). The share of departmental power stations does not exceed 3 percent.

The bulk of electric energy (up to 90 percent) is produced at 10 thermal power plants with a total installed capacity of 10.6 million kW. Twenty-nine hydropower stations with a total capacity of 1.4 million kW operate within the Company. The length of electric grids of all voltages exceeds 238.5 thousand km. The leadership of the country pays close attention to issues of the energy sector development. The Resolution of the President of the Republic of Uzbekistan (N PP-1442 dated 15 December 2010) On the Program for the Industrial Development of the Republic of Uzbekistan for 2011-2015 stipulates for key areas of the industry’s development until 2015 envisaging implementation of 44 investment projects totaling over 5.2 billion U.S. Dollars.

Transportation Network

Currently, over 50 percent of generating capacities of the Central Asian United Energy System are concentrated in Uzbekistan. This system also includes energy systems of Turkmenistan, Tajikistan, Kyrgyzstan, and Southern Kazakhstan.

The State Join Stock Company Uzbekenergo is a regulatory body of the electric energy and coal industry. At this stage, the company is comprised of 54 enterprises and organizations in charge of design, construction and assembly, operation and maintenance. The industry is staffed with over 55,000 people.

The installed capacity of the country’s power stations amounts 12.4 million kW (including SJSC Uzbekenergo – 12.0 million kW). The share of departmental power stations does not exceed 3 percent.

The bulk of electric energy (up to 90 percent) is produced at 10 thermal power plants with a total installed capacity of 10.6 million kW. Twenty-nine hydropower stations with a total capacity of 1.4 million kW operate within the Company. The length of electric grids of all voltages exceeds 238.5 thousand km. The leadership of the country pays close attention to issues of the energy sector development. The Resolution of the President of the Republic of Uzbekistan (N PP-1442 dated 15 December 2010) On the Program for the Industrial Development of the Republic of Uzbekistan for 2011-2015 stipulates for key areas of the industry’s development until 2015 envisaging implementation of 44 investment projects totaling over 5.2 billion U.S. Dollars.