On February 6, President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting to discuss the efficiency indicators in the oil and gas industry and tasks to increase the production of natural gas and liquid hydrocarbons this year.

The oil and gas industry is vital for providing the population and economic sectors not only with energy resources, but also with raw materials for the production of many types of products. In this regard, programs are being realized to spearhead profound structural transformation and boost the competitiveness of this industry and the energy sector as a whole, as well as geology. In particular, the management system in the joint-stock company Uzbekneftegaz has been improved, the joint-stock companies Uztransgaz and Hududgaztaminot in its composition were reorganized as separate independent entities. 

The presidential decree on measures to improve the organization and conduct of geological exploration for oil and gas, signed 18 November 2019, defines all the required organizational and financial conditions for identifying new fields and bolstering the hydrocarbons base.

President Shavkat Mirziyoyev in his recent Address to the Oliy Majlis noted that in the oil and gas sector, with the participation of foreign experts, it is crucial to increase the efficiency in managing state-owned enterprises and optimize costs, and achieve debt reduction. Priority tasks in this direction were also set for the newly approved government.

The meeting participants examined the measures to be implemented in the oil and gas sector this year.

Despite steadfast efforts, systemic problems persist in the sphere and negatively affect the development of other industries.

“We all need to realize one thing. Last year, a lot was said about the shortcomings in the oil and gas sector. But now we must move on to practical matters on the ground. Either we will help the leadership of the industry and get it out of the swamp, or it will pull our economy down and ruin all our plans for economic growth,” the President said.

The President pointed to the insufficiency in the modernization of enterprises, high losses and frequent interruptions in gas delivery.

The Ministry of Energy has been tasked with boosting production by more than 4 billion cubic meters of natural gas this year compared to 2019 volumes for the sustainable supply of fuel to industries and the population. Instructions were given on reducing technological losses and production costs. 

The head of state noted the need to attract international consulting companies into the activities of a design office for reforming the hydrocarbon sector, linking the wages of enterprise managers with key performance indicators (KPI). Shavkat Mirziyoyev urged to introduce anti-corruption compliance control in all enterprises.

Uzbekneftegaz got instructed to critically analyze the condition of each field and ensure increase in gas production.

The President emphasized the necessity in completing the implementation of three projects for the construction and modernization of installations for the separation of propane-butane mixture in order to meet the needs of the population in liquefied gas.

Instructions were given to complete the construction of a synthetic liquid fuel (GTL) plant at the Shurtan Gas Chemical Complex, as well as to introduce digital field systems and automated economic management and resource accounting at the enterprises of the industry.

The joint-stock companies Uztransgaz and Hududgaztaminot were entrusted with the task of ensuring – by July this year – the connection of 2.5 thousand ‘big’ consumers to the online natural gas consumption metering system. The President suggested that modern electronic gas meters be installed for at least 2 million consumers in the framework of automation of inspection and metering of use.

Executives responsible for accelerating the implementation of measures discussed at the meeting have been identified.