Reading: BP enters Uzbekistan oil and gas push with 40% stake in six blocks

BP enters Uzbekistan oil and gas push with 40% stake in six blocks

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BP has bought a 40% participating interest in a production sharing agreement covering six blocks in Uzbekistan, marking what the company called its entry into the country. The deal gives BP a 20% stake from and another 20% from , while SOCAR stays on as the operator.

The agreement covers the Boyterak, Terengquduq, Birqori, Kharoy, Qoraqalpoq and Qulboy blocks in Uzbekistan’s North Ustyurt region. BP said on Wednesday that it had taken the stake as it looks for profitable opportunities to strengthen its oil and gas business, a shift that fits its recent refocusing on core hydrocarbons after cutting back on renewables investments.

The move lands on a project that was already gathering pace. Last year, SOCAR and Uzbekneftegaz began advancing a $2-billion energy project in the same six blocks, setting the stage for a wider push into one of Central Asia’s less developed exploration areas. BP’s arrival does not change the operator line, but it adds a major international name and fresh financial weight to the venture.

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said the company sees the country as a place with significant resource potential and an opportunity to support the exploration and development of oil and gas resources, with long-term benefits for the region. That is the promise. The harder test is whether the six-block project in North Ustyurt can move from plans and partnerships to commercial output in a market where the upside is still being mapped.

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