Reprivatization of the Fergana Oil Refinery is not planned for now — Davaktiv

Reprivatization of the Fergana Oil Refinery is not currently envisaged — Davaktiv

The State Assets Management Agency (Davaktiv) has stated that the issue of reprivatizing the Fergana Oil Refinery is not on the agenda for now. The enterprise's debts are being studied as part of an international audit.

According to him, the Fergana Oil Refinery was previously part of "Uzbekneftgaz". Before the sale of the refinery, its state share was transferred to the State Assets Management Agency, and mutual settlements with "Uzbekneftgaz" were carried out during this process. Thus, the enterprise was separated from "Uzbekneftgaz".

Currently, Davaktiv is the sole shareholder of the refinery. The director of the agency emphasized that the issue of reprivatizing the enterprise has not yet been put on the agenda.

"As for future plans, today the issue of privatization is not yet on the agenda," he said.

The agency director said that a short-term strategy for the refinery has been developed and a number of measures have been taken for its financial recovery. He noted that the utilization rate of the enterprise's production capacity has been increased from 40 percent to nearly 100 percent.

Diesel fuel production volume increased by 30 percent, and the production of products used in road construction increased by 60 percent. The production volume of aviation kerosene also multiplied several times.

At the press conference, journalists also asked about the enterprise's debts and what work is being done to cover them.

According to the head of Davaktiv, an international audit is currently being conducted at the refinery. Within its framework, the purposes for which the debts were attracted and the actual debt obligations of the enterprise will be studied.

"Which debts were attracted for what purpose and the debts actually existing at the enterprise are being studied. Whether they will be paid during financial activities while maintaining the established conditions or whether the payment terms will be deferred depends on the contracts," he said.

The head of Davaktiv also explained that the contract for the sale of the state share in the charter capital of the Fergana Oil Refinery was terminated because the investor failed to make payments on time.

According to him, payments were delayed due to financial difficulties in the investor's other projects. The purchase and sale agreement stipulated that if payments were delayed for three months, the seller had the right to unilaterally terminate the contract.

"We also involved international lawyers in this and, based on their conclusions, terminated it unilaterally. Of course, after notifying the other party, and the state asset has been returned today," said the head of the agency.

In May 2022, the State Assets Management Agency announced that it had sold the 100 percent state share in the charter capital of the Fergana Oil Refinery to Saneg for $100 million. Prior to that, the enterprise belonged to "Uzbekneftgaz".

As of August 2024, the State Assets Management Agency owned 58.5 percent on behalf of the state, while Saneg owned 41.5 percent.

In June 2026, Gazeta, citing data from the state register of enterprises and organizations, reported that the refinery had returned to state control. In the register, the State Assets Management Agency is listed as the sole founder of Fergana Oil Refinery LLC.

The Fergana Oil Refinery is one of the largest producers of fuel and lubricants in Central Asia. The enterprise produces high-octane gasoline, aviation kerosene, diesel fuel, motor and industrial oils, bitumen, paraffin, petroleum coke, and other petroleum products. The refinery's website also notes that the Fergana Oil Refinery is the only producer of lubricants in Uzbekistan and a major producer of base oils in Central Asia.