UNG Overseas — Uzbekistan's International Energy Gateway

Three investment areas

Expanding geological exploration remains one of the most promising areas. Uzbekistan possesses significant, underexplored territories of interest to international energy companies. Therefore, work is underway to improve contractual arrangements, increase the transparency of geological data, and create conditions that meet international standards.

Modernization of existing fields is equally important. The introduction of modern technologies, including horizontal drilling, enhanced oil and gas recovery methods, digital modeling, and process automation, makes it possible to significantly improve production efficiency and extend the life of mature assets. International experience confirms this: Oman, through the systematic implementation of horizontal drilling and enhanced oil recovery methods, managed to stabilize production at mature fields. Egypt, after experiencing a significant decline in gas production in the first half of 2010, reversed the trend by reforming contractual terms, expediting licensing procedures, and attracting international operators—which, in particular, led to the discovery and rapid commissioning of the giant Zohr field.

At the same time, refining and petrochemicals are developing, enabling a significant increase in the added value of extracted resources. The creation of modern refining capacities and the development of petrochemical production are creating new export opportunities and strengthening the country's industrial base. Combined with the upcoming abolition of UzGasTrade JSC's monopoly on gas exports and imports, effective July 1, 2026, this creates an investment environment that Uzbekistan has never had before.

Energy Efficiency and Water Infrastructure: A Hidden Reserve

Uzbekistan's investment potential extends far beyond hydrocarbon production. Significant opportunities are opening up in the electric power industry, energy efficiency, and the modernization of water infrastructure. Moreover, these areas are more closely interconnected than might initially appear.

Over the past eight years, electricity generation in the country has increased by 38%, reaching 81.5 billion kWh. The private sector's share of generation was 24%, while renewable sources accounted for 16%. Targets have been set for reducing grid losses from 14% to 8-9% by 2030 and saving 10-15% of energy in each industry. Since 70-80% of electricity is generated from gas, every 1% increase in efficiency frees up gas for processing or export. Essentially, energy efficiency is a "virtual deposit" that requires no geological exploration.

The water industry is one of the largest consumers of electricity. Around seven thousand large pumping stations in the country consume 6.5-7 billion kWh annually. Since 2017, the industry's energy consumption has been reduced from 8.3 to 6.5 billion kWh. A large-scale modernization program has been announced, including concreting canals, expanding water-saving technologies to 2 million hectares by 2030, and installing 75-100 MW solar power plants near large pumping stations.

There is a direct connection between these sectors: the gas burned to generate electricity is largely used to pump water. Synchronous modernization of this entire chain—from production to water management—creates a multiplier effect that is impossible when addressing each link separately. This represents a significant market for international investors and contractors: pumping equipment upgrades, frequency converters, SCADA systems, solar power generation, and canal lining.

Diversification of Financing Sources

The investment attraction strategy involves the use of a wide range of financial instruments and partnerships:

International financial institutions (World Bank, ADB, EBRD, Islamic Development Bank);

Commercial banks and export credit agencies;

Project and trade finance;

Capital market instruments, including international bonds and Islamic finance;

Strategic partnerships with international energy companies.

This integrated approach provides the opportunity to ensure sustainable access to capital while maintaining financial stability and mitigating risks.

Human Capital Development as a Strategic Priority

Along with investment and technology, human capital remains a key factor in development. The global energy industry is undergoing a technological transformation driven by digitalization, automation, and the implementation of new engineering solutions. The demand for new competencies extends beyond the oil and gas sector: modernizing water management and improving energy efficiency require the same skills—SCADA systems, digital twins, and managing complex infrastructure projects.

Some of the world's leading national oil companies, which have made significant progress in recent decades, have established their own training centers. ADNOC Technical Academy in the UAE has been operating since 1978 and is internationally accredited.