Energy
SOCAR to Enter Uzbekistan Retail Fuel Market as Trade Targets $1 Billion
August 27, 2026
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Azerbaijan's state oil company SOCAR will enter Uzbekistan's retail fuel market and invest in a network of gas stations across the country, Economy Minister Mikayil Jabbarov announced on August 22, extending Baku's economic footprint in Central Asia beyond upstream energy projects.
The retail expansion builds on SOCAR's existing position in Uzbekistan, where it participates in the development of the Ustyurt field in partnership with Uzbekneftegaz and BP, according to Azernews.
Anchored in a State Visit
The announcement came alongside President Ilham Aliyev's state visit to Tashkent, where he and Uzbek President Shavkat Mirziyoyev chaired the third meeting of the Supreme Interstate Council and signed a Treaty of Eternal Friendship. An agreement signed following the countries' interregional forum sets a target of lifting bilateral trade turnover to $1 billion, Jabbarov said, up from current levels that remain a fraction of that figure.
Jabbarov also highlighted projects involving state-owned miner AzerGold in Uzbekistan, signalling that Azerbaijani state companies intend to compete across the Uzbek resources sector rather than in hydrocarbons alone.
Automotive Manufacturing Flows the Other Way
The economic relationship is becoming two-directional. Aliyev said during the visit that more than $80 million is planned for investment in Hajigabul, Azerbaijan, where a second automotive plant drawing on Uzbek industry experience is under construction. The facility is intended to move Azerbaijan toward a full production cycle in vehicle manufacturing, the president said.
For SOCAR, downstream retail in a market of 37 million consumers offers steadier margins than upstream projects and follows the playbook it has used in Türkiye, Georgia, Ukraine and Romania, where its branded station networks anchor regional visibility. The company has been reorganising its international portfolio as it markets gas from the Absheron field to European buyers and deepens partnerships with TotalEnergies and ADNOC's investment platform XRG.
Execution details, including the number of stations, investment volume and timeline, have not yet been disclosed.
Photo: Unsplash
