Uzbekneftegaz seeks $580M from banks for refinery, GTL projects

Photo: Uzbekneftegaz

BAKU, Azerbaijan, October 16. Uzbekistan’s state-owned oil and gas company Uzbekneftegaz has presented four projects worth a combined $580 million to five international banks, seeking to secure financing for refinery modernization and deeper processing of gas-to-liquids (GTL) products, during a meeting in London on October 15.

This was reflected in the statement by Uzbekneftegaz, following a meeting between Sukhrоb Khamroev, first deputy chairman of Uzbekneftegaz’s management board, and representatives of MUFG Bank, Deutsche Bank, JPMorgan, Standard Chartered Bank and ICBC Standard Bank.

The discussions covered the company’s recent corporate developments, financial performance and production results, as well as opportunities to finance planned projects.

For the 12 months ended June 30, 2026, Uzbekneftegaz’s revenue rose 10% to $3 billion, while earnings before interest, taxes, depreciation and amortization (EBITDA) reached $1.5 billion, according to the company.

The company’s net debt-to-EBITDA ratio declined from 3.1 times to 2.2 times, reflecting a reduction in its debt burden.

Additionally, the parties discussed efforts to optimize the company’s debt portfolio. Uzbekneftegaz has already refinanced and repaid loans ahead of schedule totaling $385 million and plans to refinance an additional $1.1 billion. The company estimates that these measures could generate $83 million in savings through lower interest rates, reduced interest payments and cheaper borrowing.

The company also briefed the banks on measures to stabilize natural gas production under decisions adopted by Uzbekistan’s president. Since the beginning of 2026, five new fields have been discovered, and the company expects additions to reserves to exceed annual production. Uzbekneftegaz has also established its own drilling company.

By the end of the year, the company expects to complete drilling 120 wells, twice the number recorded in 2025.

To attract financing, Uzbekneftegaz presented four prospective projects with a preliminary combined cost of about $580 million. These include modernizing the Bukhara Oil Refinery to produce Euro 5-standard high-octane gasoline and three projects to deepen the processing of products from the company’s gas-to-liquids (GTL) plant.

The company plans to finance up to 85% of the projects’ total cost through loans.

Bank representatives welcomed the company’s ongoing reforms and transformation efforts, saying the measures were strengthening confidence in Uzbekneftegaz among international financial institutions.

The parties agreed to continue working together, including on financing the proposed projects.