Why is this important
Reducing costs in the oil and gas sector reduces the burden on government investments and increases the profitability of projects. Optimizing construction, geophysical, and drilling operations can accelerate infrastructure implementation and improve the industry’s economic efficiency. The transition to modern norms and open tenders increases transparency and trust in managing the country’s largest resource company.
What happened
- “Uzbekneftegaz” plans to reduce the cost of construction work to 20% by 2026.
- The company discussed the preliminary results of the cost analysis conducted by independent experts.
- The Chairman of the Board instructed to revise outdated norms and develop industry standards.
- It was decided that new projects will be based on economic justification, and contractors will be selected through open tenders.
- The management mandated the publication of all decisions made for the public.
Numbers and facts
- Part of the project documentation was approved in 2005 and no longer meets market conditions and regulatory requirements.
- Outdated calculations increase construction costs by an average of 14%.
- Geophysics: potential cost reduction by 15% — from 33 billion to 28 billion soums when comparing offers from 3-4 companies.
- Drilling: reducing costs for material resources and mechanisms to 15%.
- In the Kagan district, the application of the 3D method in a section of 450 sq. km will reduce the volume of fieldwork to 20%.
- Plan: to reduce the cost of construction work in 2026 by at least 20% compared to the previous year.
- On December 17, Abdugani Sanginov was appointed as the new chairman of the board, replacing Bahodirjon Sidiqov.
Context
- Cost optimization can free up significant funds for priority oil and gas projects and increase resource utilization efficiency.
- The introduction of modern standards and transparency of solutions will reduce the risk of overstated estimates and strengthen control over contractors.
- Reforming the cost approach can be an indicator of larger-scale changes in company management.
