The state oil and gas company of Uzbekistan, Uzbekneftegaz, is strengthening its control over the joint ventures in which it holds stakes. This decision was made after discovering a number of problems related to management, financial discipline, and reporting, according to the news agency UzDaily.uz.
The issue was discussed at a meeting chaired by Abdugani Sagninov, Chairman of the Board of Directors of Uzbekneftegaz. A preliminary analysis of the joint ventures, including Natural Gas-Stream, New Silk Road Oil and Gas, and ANDIJANPETRO, revealed systemic deficiencies in work processes, accounting, and financial reporting.
Uzbekneftegaz noted that the reporting mechanisms between the joint ventures and the joint-stock company were not functioning fully. The company recorded a year-on-year decrease in production volumes, problems with the effective use of investment funds, insufficient financial stability, and incomplete fulfillment of dividend payment obligations. Uzbekneftegaz concluded that the lack of necessary oversight from the founders contributed to the exacerbation of these problems.
As part of the new measures, Uzbekneftegaz intends to conduct a reassessment of production capacities, the efficiency of geological exploration, and technical operations. Accounting for outstanding debts owed to Uzbekneftegaz will also be carried out.
The company will focus on digitizing control over financial flows and procurement. All planned activities, investment projects, and work processes in the joint ventures will require approval from Uzbekneftegaz, which will preliminarily assess the necessity, economic efficiency, and costs before their implementation.
Uzbekneftegaz will review the financial condition and dividend policy of the joint ventures. The enterprises have been instructed to ensure full and timely payment of dividends for 2025–2026, repay existing debts, and establish systematic control over future obligations.
It is reported that the new measures are aimed at preventing the misuse or inefficient use of funds, as well as ensuring oversight of expenditures and decision-making. The ultimate goal is to create financially stable and profitable joint ventures with growing production and net profit figures.