"Uzbekneftegaz" did not propose returning the Fergana Oil Refinery to its structure after the termination of the deal with Saneg

Uzbekneftegaz Has Not Proposed to Return Fergana Oil Refinery to Its Structure Following Saneg Deal Termination

Uzbekneftegaz has not submitted any proposals to return the Fergana Oil Refinery (FOR) to the company's structure after the enterprise was transferred to state ownership.

Sukhrob Khamraev, First Deputy Chairman of the Board of Uzbekneftegaz, stated this at a press conference on October 27, responding to journalists' questions regarding the future of the Fergana Oil Refinery.

According to the company representative, the plant was removed from the Uzbekneftegaz structure back in 2018, when it was transferred to the State Assets Management Agency (SAMA). Later, the enterprise was put up for privatization.

"For eight years now, the Fergana Oil Refinery has not been part of Uzbekneftegaz. As far as I know, the enterprise has now been returned to the disposal of the State Assets Management Agency. However, we are unaware of the details of the obligations that arose between the agency and the investor," the Uzbekneftegaz representative noted.

Answering a question about whether returning the plant to Uzbekneftegaz is being considered, the First Deputy Chairman reported that SAMA is studying several options for the future management of the asset.

According to him, possible solutions include changing the enterprise's management system, returning it to Uzbekneftegaz, attracting investors, or privatization.

At the same time, Khamraev stressed that a final decision on transferring the plant to Uzbekneftegaz has not yet been made.

To a clarifying question about whether Uzbekneftegaz itself had submitted a proposal to return the plant to its structure, Sukhrob Khamraev answered negatively.

It worth recalling that in 2020, the Fergana Oil Refinery was transferred to the trust management of Jizzakh Petroleum, which was later renamed Sanoat Energetika Guruhi (Saneg).

In May 2022, the State Assets Management Agency announced the sale of the state share in the plant to Saneg for $100 million.

Under the terms of the deal, the investor also committed to investing $380 million in modernizing the enterprise. The project envisaged increasing the depth of oil refining, producing modern types of gasoline and diesel fuel, as well as expanding production capacity.

However, in early June 2026, it became known that the Fergana Oil Refinery had fully returned to state ownership again.

According to data from the Unified State Register of Enterprises and Organizations, the State Assets Management Agency became the sole founder of the plant with a 100 percent stake in the charter capital amounting to 124.54 billion soums.

Back in May 2026, the agency owned 58.5% of the enterprise, while Saneg held 41.5%.

On October 8, Director of the State Assets Management Agency Sokhibjon Murodov explained the return of the Fergana Oil Refinery to the state by the investor's financial difficulties.

According to him, the problems Saneg encountered during the implementation of other projects affected the company's ability to fulfill its payment obligations for the acquired plant in a timely manner.

"The investor ran into financial difficulties in other investment projects, which created issues with fulfilling payment obligations. As a result, we terminated the contract, and to date, the asset has been returned to the state," Murodov stated.

He specified that the purchase and sale agreement provided the seller with the right to unilaterally terminate the agreement in the event of a three-month payment delay.

Before making the decision, the agency engaged international legal consultants and notified the investor of the contract termination.

At the same time, the exact amount Saneg managed to pay for the plant, the remaining obligations, and the procedure for financial settlements after the agreement's termination were not publicly disclosed.

On October 8, Sokhibjon Murodov stated that the issue of reprivatizing the Fergana Oil Refinery was not being considered at that time.

According to him, a short-term strategy was developed for the enterprise, and financial recovery measures were initiated.

In addition, an international audit is being conducted at the enterprise to establish the actual volume of its financial obligations. Based on the audit results, the procedure for repaying or restructuring debts is expected to be determined.

At the end of 2025, FOR incurred a loss of 538.1 billion soums. In January 2026, as part of financial stabilization measures for Enter Engineering, Eriell Group, and Saneg, the government instructed a working group to prepare proposals for new investors capable of completing a number of strategic projects, including the modernization of the Fergana Oil Refinery.

The Fergana Oil Refinery is one of the largest producers of fuels and lubricants in Central Asia. The enterprise produces gasoline, diesel fuel, aviation kerosene, motor and industrial oils, bitumen, and other petroleum products.

As a reminder, a number of transactions involving assets related to Saneg became the subject of a criminal case against former Chairman of the Board of Uzbekneftegaz Bakhodirjon Sidikov and other defendants.