BP buys 40% stake in Uzbekistan oil and gas blocks
BP's Strategic Investment in Uzbekistan's Energy Sector
Overview of the Acquisition
May 13 (Reuters) - BP said on Wednesday it has acquired a 40% participating interest in a production sharing agreement (PSA) covering six oil and gas exploration blocks in Uzbekistan's Ustyurt region, as it refocuses on traditional energy.
Background: BP's Shift in Energy Strategy
Previous Withdrawal from the Region
BP pulled out of exploration in the region in 2021 as it pursued a green push under then-CEO Bernard Looney, who had pledged to cut oil and gas output by 40% by 2030. However, the company is now pivoting back to fossil fuels.
BP's Perspective on Uzbekistan's Potential
"We believe Uzbekistan has significant resource potential and see this as an opportunity to support the exploration and development of the country's oil and gas resources," Gio Cristofoli, BP's regional president for Azerbaijan, Georgia and Türkiye said on Wednesday.
Details of the Partnership
Stake Distribution Among Partners
BP purchased a 40% interest in total from existing partners SOCAR and Uzbekneftegaz, which now hold 30% each. SOCAR remains as the operator of the blocks, including the Boyterak, Terengquduq, Birqori, Kharoy, Qoraqalpoq and Qulboy.
Historical Context of the Agreement
Initial Exploration Deals
BP first signed exploration deals with SOCAR and Uzbekneftegaz in 2018.
Reporting Credits
(Reporting by DhanushVignesh Babu in Bengaluru; Editng by Eileen Soreng)
