Azerbaijan’s state oil company SOCAR has begun developing an oil field in Uzbekistan. This was announced by Azerbaijani President Ilham Aliyev on August 22 at a trilateral meeting with the President of Uzbekistan and the Chairman of the Halk Maslahaty of Turkmenistan in Turkmenbashi.
“We have traditional energy cooperation with Turkmenistan. We have already entered this field with Uzbekistan. Our state oil company SOCAR has already begun developing an oil field in Uzbekistan, and the contract has already been signed,“ Aliyev said.
According to him, Azerbaijan expects to receive ”good news” about the results of the work within the next year or two. “We are all eagerly awaiting news about the discovery of a large oil field in Uzbekistan,” he said.
On July 24, Uzbekistan and the Azerbaijani state-owned company SOCAR signed a production sharing agreement (PSA) for the Ustyurt Plateau.
Investments in the project are estimated at $2 billion. Over the next five years, SOCAR, which is the project operator, will conduct 3D seismic surveys covering an area of at least 1,000 square kilometers and drill at least one exploration well. If a commercial field is discovered, the parties will proceed with its development. Reserves are estimated at up to 100 million tons of oil and 35 billion cubic meters of gas.
Masdar (UAE) has begun construction of Azerbaijan’s largest solar power plant with a capacity of 445 MW.
“As part of the project implemented by Masdar, the installation of the first solar panel support for the Bilasuvar solar power plant and construction work in general began on August 12,” according to a statement on the official social media page of the Bilasuvar district administration (in the south of the country). An area of 1,454 hectares has been allocated for the construction of the plant.
“The Bilasuvar solar power plant will make an important contribution to increasing renewable energy production in the country, increasing the share of clean energy in the energy balance, and developing a green energy policy,” the statement said.
As reported, the groundbreaking ceremony for the 445 MW Bilasuvar and 315 MW Neftchala solar power plants took place during Baku Energy Week in June 2024. Both plants are scheduled to be commissioned in 2027.
Once completed, the two solar power plants are expected to generate around 1.7 billion kWh of electricity per year. Their launch will also reduce carbon dioxide emissions by approximately 830 million tons per year and lead to annual savings of 380 million cubic meters of natural gas. The total cost of the solar power plants is estimated at $670 million. These projects are being implemented by Masdar in cooperation with SOCAR Green (a subsidiary of the State Oil Company of Azerbaijan, SOCAR). SOCAR Green’s share in each of the projects is 25%. The Bilasuvar plant will generate 897 million kWh of electricity per year, supplying power to 179,000 consumers (homes) and saving 193 million cubic meters of gas annually.
Azerbaijani President Ilham Aliyev has signed a decree allocating funds equivalent to $2 million to the Ministry of Energy of the Republic of Azerbaijan for the purchase of Azerbaijani-made energy equipment, which will be transferred to Ukraine as humanitarian aid.
“To allocate funds in manats equivalent to 2.0 (two) million US dollars from the reserve fund of the President of the Republic of Azerbaijan, provided for in the state budget of the Republic of Azerbaijan for 2025, to the Ministry of Energy of the Republic of Azerbaijan for the purchase and shipment of electrical equipment manufactured in the Republic of Azerbaijan for the purpose of providing humanitarian aid to Ukraine,” reads the text of the decree dated August 11, published on the website of the President of Azerbaijan.
As reported, on July 28, 2025, Naftogaz of Ukraine signed an agreement with SOCAR Energy Ukraine on the purchase of Azerbaijani natural gas. Under the agreement, test supplies will be carried out via the Trans-Balkan route through the Bulgaria-Romania-Ukraine corridor.
A new group of Ukrainian children left for Baku on Monday as part of a rehabilitation program, Azerbaijan’s ambassador to Ukraine Seymur Mardaliev said.
“A new group of Ukrainian children left for Baku today as part of a children’s rehabilitation program offered by Azerbaijan. I am grateful to my colleagues from the Azerbaijani embassies in Ukraine and Moldova, who facilitated their smooth departure from Chisinau,” he wrote on social media.
According to the ambassador, 360 Ukrainian children have joined the program so far.
On July 24, the Ministry of Energy of Uzbekistan, the State Oil Company of Azerbaijan (SOCAR), and Uzbekneftegaz signed a production sharing agreement (PSA).
The document provides for geological exploration and further production of hydrocarbons in investment blocks of the Ustyurt oil and gas region.
Within the framework of the PSA, 3D seismic exploration is planned to be carried out on an area of at least 1,000 square kilometers. If a commercial deposit is discovered, the parties will proceed to its development and production.
“The partnership with SOCAR reflects New Uzbekistan’s strategic desire to diversify its sources of investment and introduce best international practices. The Ustyurt region has high potential, and the signing of the PSA opens up new horizons for its effective development. We are confident that this project will be an important driver of technological progress and economic growth,” said Minister of Energy Dzhurabek Mirzamahmudov.
“The signing of this agreement is evidence of our long-term strategy for the development of the energy sector in Central Asia and the Caspian region. SOCAR is enthusiastic about implementing the project, applying its accumulated experience and advanced technological solutions,” said SOCAR President Rovshan Najaf.
Uzbekneftegaz Chairman Bakhodir Sidikov said the agreement would strengthen the company’s position as a “reliable and innovation-oriented partner open to international cooperation and large-scale investments.”
In May 2018, Uzbekneftegaz SOCAR and BP Exploration (Caspian Sea) signed a memorandum proposing that the companies consider joint geological exploration of the Aralmore, Samsko-Kosbulak, and Baiterek investment blocks in the Ustyurt district.
On July 4, the President of the Republic of Uzbekistan took part in the 17th summit of the Economic Cooperation Organization (ECO), which was held in Khankendi under the chairmanship of the President of Azerbaijan.
The summit was attended by heads of state and government of SCO member states, including Iran, Kyrgyzstan, Tajikistan, Turkey, Pakistan, Kazakhstan, Turkmenistan, as well as representatives of Afghanistan, international organizations, and business circles of the region.
The participants discussed prospects for deepening multilateral cooperation and exchanged views on key issues on the international and regional agenda.
At the beginning of his speech, President Shavkat Mirziyoyev outlined the current challenges to security and sustainable development, reaffirmed his commitment to the peaceful settlement of conflicts, and stressed the importance of a just settlement of the Palestinian-Israeli issue. Among the new initiatives put forward are:
• Adoption of the concept of “Strategic Goals of Economic Partnership – 2035,” which focuses on digitalization, innovation, and artificial intelligence.
• Holding a meeting of trade ministers on ECO issues in Tashkent to discuss strategic issues and prepare an agreement on trade facilitation.
• Creation of a system of “green corridors” for the rapid exchange of information and unhindered trade in agricultural products.
• Development of a long-term Ecoinvest program to stimulate private and international investment in sustainable projects in the region.
• Forming alternative transport corridors, in particular, developing the China-Kyrgyzstan-Uzbekistan railway with further connection to the Trans-Afghan Corridor.
• Accelerating the creation of a Digital Transport and Customs Office to coordinate the digitalization of logistics.
• Holding an ECO national airline forum in Samarkand to stimulate air transport, tourism, and marketing cooperation in the aviation sector.
• Developing a roadmap for expanding tourism services aimed at doubling tourist flows within the ECO.
• Creation of a cross-border “green program” for the restoration of ecosystems in desert areas with an emphasis on afforestation and the development of recreation.
• Preparation of proposals for reforming the EAEU to enhance its effectiveness and authority in the international arena.
In conclusion, the President of Uzbekistan expressed his confidence that the summit would give new impetus to economic cooperation and open a stage of meaningful transformation of regional partnership.
Full text of the speech by the President of Uzbekistan
