On February 6, 2020, President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting to discuss the effectiveness of the oil and gas industry, tasks for this year to increase the natural gas and liquid hydrocarbons production capacity.

As is known, the oil and gas industry is important not only for providing the population and economic sectors with energy resources, but also for raw materials for the production of many types of products. In this regard, programs are being implemented for deep structural transformation and increasing the competitiveness of this industry and the energy sector as a whole, as well as geology. In particular, the management system in JSC Uzbekneftgaz was improved, JSC Uztransgaz and JSC Khududgaztaminot were reorganized as separate independent organizations.

All the necessary organizational and financial conditions for identifying new fields and strengthening the hydrocarbon base have been defined by the resolution of the Head of the state “On measures for improving the organization and conduction of geological exploration for oil and gas” of November 18, 2019.

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

The current measures to be implemented in the oil and gas sector this year were considered at the meeting.

Despite persistent conditions, systemic problems that negatively affect the development of other industries were noted.

“We all need to realize one thing. Last year, we have talked a lot about the shortcomings in the oil and gas sector. But now we must move on to practical affairs at places. 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 recovery”, the President said.

Insufficiency of activities on modernization of enterprises, high losses and frequent interruptions in gas delivery have been indicated.

The Ministry of Energy has been given the task to ensure production this year by 4.3 billion cubic meters of natural gas more than in 2019, for sustainable supply of fuel to economic sectors and the population. Instructions have been given on reducing technological losses and production costs.

The Head of the state noted the need for attracting international consulting companies in the activities of the project office for reforming the oil and gas sector, linking the wages of enterprise managers with key performance indicators (KPI). Instructions have been given to introduce anti-corruption compliance control in all enterprises.

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

The necessity of completing the implementation of 3 projects for construction and modernization of installations for the separation of propane/butane mixture in order to meet the needs of the population in liquefied gas was emphasized.

The progress of construction of a plant for production of synthetic liquid fuel (GTL) based on Shurtan Gas Chemical Complex have been considered. Instructions were given on implementation of digital deposit systems and automated economic management and resource accounting at the enterprises of the industry.

JSC Uztransgaz and JSC Khududgaztaminot have been given instructions to ensure by July this year the connection of 2.5 thousand large consumers to the online natural gas consumption metering system. The necessity of providing at least 2 million consumers with modern electronic gas meters within the framework of automation of control and metering of consumption was noted.

Persons responsible for accelerating the implementation of the measures discussed at the meeting were identified.