Uzbekistan cancels oil licenses held by Saneg
The State Assets Management Agency revoked several oil and gas field licenses held by Sanoat Energetika Guruhi (Saneg) for failing to develop deposits and meet conditions. The company, which recently supplied 80% of the country's oil, is in financial difficulty.
Uzbekistan has revoked several oil-field licenses held by Sanoat Energetika Guruhi (Saneg), a major private oil and gas producer formerly known as Jizzakh Petroleum.
The decision and the reason
Sohibjon Murodov, director of the State Assets Management Agency, explained at a press conference on 8 October that the licenses were cancelled because the deposits had not been developed and licensing conditions had not been met. Officials did not say how many licenses were cancelled, which fields were affected, or how the decision would affect the company's operations.
Why Saneg mattered
When the Fergana refinery deal was announced in 2022, Saneg accounted for roughly 80% of Uzbekistan's oil production and held rights to 103 oil and gas fields. The company is linked to businessman Bakhtiyor Fozilov.
The collapse of the Fergana refinery deal
In May 2022, Saneg agreed to buy the Fergana Oil Refinery for $100 million. The deal fell through after payments ran three months overdue, and by June 2026 the refinery had returned to full state ownership.
Unpaid wages
Saneg and three associated companies currently owe about $131 million in unpaid wages to 38,700 employees. The license cancellations come against the backdrop of the company's financial difficulties.
