Economics

Uzbekistan wants to produce fuel together with Azerbaijan for the domestic market.

Uzbekistan has proposed to Azerbaijan to jointly produce automobile and aviation fuel for the Uzbek market. One option is for Uzbekistan to participate in a new refinery in Azerbaijan, with subsequent delivery of some of the output to Uzbekistan, said Energy Minister Sherzod Khodjayev.

Uzbekistan and Azerbaijan are exploring the possibility of jointly producing petroleum products to meet the needs of the Uzbek market, as well as long-term supplies of oil and finished fuel. This was reported by the Uzbek Ministry of Energy to Gazeta.uz.

Due to growing domestic demand, Uzbekistan is seeking to diversify its sources of supply for motor and diesel fuel, aviation kerosene, and other petroleum products.

One of the areas under discussion is the joint production of motor and aviation fuel using refining facilities in both Uzbekistan and Azerbaijan.

Energy Minister Sherzod Khodjayev, in an interview with the Uzbekistan 24 television channel, said that the Azerbaijani side has been asked to consider several options for such cooperation.

"One of the proposals voiced today is to jointly produce petroleum products, motor and aviation fuel, for the needs of Uzbekistan," he said.

According to the minister, one of the options involves producing products at existing oil refineries in Uzbekistan. Another is the Uzbek side's participation in a new oil refinery in Azerbaijan.

"The idea is to join as a partner in the new oil refinery being built in Azerbaijan and supply part of the products produced there to Uzbekistan. I believe this cooperation will undoubtedly contribute to the reliable supply of petroleum products to the Uzbek market," noted Sherzod Khodjayev.

The Ministry of Energy also reported that long-term supplies of oil and petroleum products, joint processing of hydrocarbon raw materials, technology exchange, and the creation of sustainable supply chains are being discussed with the Azerbaijani side.

An Uzbek delegation led by Sherzod Khodjayev is scheduled to visit Azerbaijan in early September. Detailed talks are expected with the country's Ministry of Energy and the state oil company SOCAR on the implementation of the agreements reached by the presidents of the two countries.

Currently, cooperation between Uzbekistan and Azerbaijan in the energy sector covers geological exploration, the oil and gas industry, the production and sale of petroleum products, renewable energy, and electricity transmission.

In November 2025, former Energy Minister Jurabek Mirzamakhmudov reported that Uzbekistan and SOCAR were considering building an oil refinery if oil reserves were confirmed in blocks in the Ustyurt region.

According to him, SOCAR specialists expected good oil production figures based on geological exploration.

In July 2025, the Ministry of Energy, SOCAR, and Uzbekneftegaz signed a production sharing agreement for six investment blocks in the Ustyurt oil and gas region. The project was expected to discover up to 100 million tons of oil and 35 billion cubic meters of natural gas.

BP joined the project in May 2026.

During President Ilham Aliyev's state visit to Uzbekistan this week, it was announced that SOCAR, together with Uzbekneftegaz, also intends to develop a network of gas stations throughout Uzbekistan. The presidents of Uzbekistan and Azerbaijan launched the construction of five gas stations.

Uzbekistan's petroleum product production exceeds 1.2 million tons, with another 600,000-700,000 tons imported. "I can confidently say that our reserves are sufficient for the next two to three months," First Deputy Energy Minister Umid Mamadaminov said in early July.

Uzbekistan relies heavily on imported petroleum products, with Russia remaining a key supplier. Amid the fuel crisis in Russia and restrictions on fuel exports, Uzbek authorities have begun to actively diversify their supply sources, including aviation kerosene.

Earlier, it was reported that aviation kerosene supplies from Georgia and Iraq had been established. Uzbekneftegaz was also in discussions with China National Aviation Fuel Group and Sinopec regarding long-term supplies of Jet A-1 aviation kerosene.

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