BP acquires stake in Uzbekistan oil and gas blocks

(Sharecast News) - BP said on Wednesday that it has acquired an interest in six oil and gas exploration blocks in Uzbekistan. The blue chip has entered into a production sharing agreement (PSA) with state-owned peers Uzbekneftegaz and Azerbaijan's state-owned oil company Socar. Under the terms of the PSA, BP will hold a 40% interest after acquiring 20% from each of Uzbekneftegaz and Socar, both of which now have a 30% stake.

Financial terms were not disclosed.

Signing the deal in Tashkent, Gio Cristofoli, BP's regional president for Azerbaijan, Georgia and Turkiye, said: "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, delivering long-term benefits to the region.

"Our entry into this PSA is also a demonstration of BP further growing its exploration portfolio in support of long-term organic growth."

The six blocks are in the North Ustyurt region of the country. The project is currently in its first phase with Socar, as the operator, undertaking seismic activities.

It is the British firm's first formal project in the former Soviet state. BP pulled out of exploration in the region in 2021, as part of its push into green energy under former chief executive Bernard Looney. However, the company is now pivoting back to fossil fuels under current head Murray Auchincloss.

As at 0830 BST, shares in BP were up 1% at 550.7p.