Economics

Uzbekneftegaz and China's CNPC discussed fuel supplies and the liquidation of the accident at M-25

Uzbekneftegaz and China's CNPC discussed long-term supplies of petroleum products to Uzbekistan, the elimination of the accident at the M-25 field, and the expansion of cooperation in the oil and gas sector. The total volume of contracts and joint projects between the two companies has already exceeded $1 billion.

"Uzbekneftegaz" and China's CNPC Discussed Fuel Supplies and the Elimination of the Accident at M-25

On October 20, Abdugani Sanginov, Chairman of the Board of "Uzbekneftegaz", held talks with a delegation from the China National Petroleum Corporation (CNPC), led by Director General Zhou Xinhuai.

At the meeting, the parties discussed expanding cooperation in geological exploration, drilling, seismic surveys, improving gas production efficiency, digitalization, and supplying modern equipment.

In these areas, "Uzbekneftegaz" collaborates with Xibu, BGP, CCDC, and CNLC, which are part of the CNPC structure.

According to the Uzbek company, the total volume of cooperation with CNPC exceeded $1 billion, including import contracts, service operations, and joint projects. However, the breakdown by direction, the period over which this amount was accumulated, and the volume of funds actually utilized were not specified.

One of the key topics of the negotiations was eliminating the consequences of the accident at the "25 Years of Independence" (M-25) gas field in the Baysun district of the Surkhandarya region.

Within the framework of the project, it is planned to drill special relief wells, with the help of which specialists expect to stop the uncontrolled release of gas.

In June, Abdugani Sanginov announced the involvement of the Chinese company CCDC, a subsidiary of CNPC, in mitigating the consequences of the accident. According to him, the Chinese contractor offered the most suitable technical solution after reviewing options from companies in Russia, the US, and South Korea.

The head of the company stated that it is planned to start drilling four additional wells by the end of December 2026, and to completely eliminate the consequences of the accident in the first half of 2027.

In August, "Uzbekneftegaz" reported the start of work on the damaged well No. 604 near the village of Kofrun. To carry them out, it was expected to deliver more than 40 units of special equipment from China. At that time, the completion of the work was scheduled for July 2027.

As a reminder, on September 1, 2024, during drilling operations at well No. 604 of the field, a gas leak with a high hydrogen sulfide content occurred due to an accident, killing four people. Local residents were evacuated. No criminal case has been reported as initiated.

In March 2025, a gas blowout occurred at another well, No. 202. To prevent further emissions, the gas at the field was set on fire.

Gas reserves at M-25 are estimated at 150–170 billion cubic meters. The field is considered one of the largest undeveloped gas assets in Uzbekistan.

Another topic of negotiations was the diversification of sources for the supply of petroleum products to ensure the domestic market of Uzbekistan. Previously, "Uzbekneftegaz" reported that it was considering long-term supplies of Jet A-1 aviation fuel from China.

The parties declared their readiness to develop mechanisms for long-term supplies and coordinate the work of relevant companies.

At the same time, the message from "Uzbekneftegaz" does not specify which types of petroleum products are expected to be supplied, in what volumes, and under what conditions. The signing of new contracts was not reported either.

In addition, proposals were discussed to open a permanent CNPC representative office in Tashkent, create an administrative infrastructure to coordinate joint projects, and develop social initiatives.

In the field of personnel training, the parties considered the possibility of supporting the Tashkent branch of the I.M. Gubkin Russian State University of Oil and Gas to train engineering and technical specialists.

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