London, May 14, 2026, 13:09 BST
- BP has taken a 40% stake in six exploration blocks in Uzbekistan—marking its debut project in the country.
- CEO Meg O’Neill’s strategy is clear: streamline BP and ramp up capital commitments to oil and gas. The deal lines up with that vision.
- Talks aimed at resolving a U.S. refinery labor dispute are scheduled to pick back up Monday, keeping the issue in play as a near-term risk.
BP grabbed a 40% stake in a production sharing deal for six oil and gas exploration blocks in Uzbekistan’s North Ustyurt region, underscoring the London-listed major’s renewed push into conventional energy. Under a production sharing agreement, output, costs, and profits are divvied up between the government and project partners.
Timing’s a factor here. BP has barely started a leadership shakeup, with CEO Meg O’Neill stepping in April 1. She’s already signaled to employees that a reorg—splitting BP into upstream and downstream divisions—kicks off in June. It’s a return to something more like the traditional oil-major playbook, moving away from the renewables-heavy structure set up under Bernard Looney.
BP’s balance sheet faces fresh questions as investors look for signs the company can boost future output. In its first-quarter update on April 28, BP posted $3.2 billion in underlying replacement cost profit, thanks in part to a solid performance in oil trading. Net debt, though, climbed to $25.3 billion, leading BP to halt buybacks so it can tackle debt instead.
BP acquired a 20% stake from each of Azerbaijan’s SOCAR and Uzbekistan’s Uzbekneftegaz, bumping its share up to 40%. SOCAR and Uzbekneftegaz now each hold 30%. SOCAR stays on as operator. The assets include the Boyterak, Terengquduq, Birqori, Kharoy, Qoraqalpoq, and Qulboy blocks.
The project hasn’t moved past its initial phase. SOCAR, Uzbekneftegaz, and Uzbekistan’s energy ministry put pen to paper on the PSA in July 2025, but for now, SOCAR is focused on seismic surveys—collecting the underground data needed before any drilling decisions. There’s still no word on a purchase price, estimated resources, or when drilling might begin.
Gio Cristofoli, BP’s regional president for Azerbaijan, Georgia and Türkiye, described Uzbekistan as BP’s “first project” in the country and pointed to the “significant resource potential” the company sees there. Cristofoli added that this step lines up with BP’s push to expand its exploration portfolio for long-term organic growth. Rigzone
This deal flips the script for BP. Back in 2021, under Looney’s leadership, the company exited exploration here, leaning into a strategy that aimed to slash oil and gas production by 40% come 2030. Yet BP’s connection to the region isn’t new—those initial exploration agreements with SOCAR and Uzbekneftegaz go back to 2018.
BP’s rivals are riding out the same oil-price swings but with more muscle behind shareholder payouts. Shell last week posted a $6.9 billion first-quarter profit and bumped its dividend up 5%. TotalEnergies also hiked its dividend and plans a $1.5 billion share buyback in the second quarter. BP, on the other hand, has tightened its grip on cash since hitting pause on buybacks back in February.
On the flip side, Uzbekistan brings nothing but exploration risk right now—no actual production. Seismic surveys might highlight prospects, sure, but they’re no guarantee of commercial finds. BP takes the largest equity stake but won’t steer operations. A fruitless drill, drawn-out permits, or rising expenses could drag returns even further into the future.
The U.S. faces a more immediate labor snag. BP and the United Steelworkers union are set to sit down Monday for renewed contract discussions at BP’s Whiting, Indiana, refinery—the Midwest’s biggest, processing 440,000 barrels daily. Roughly 800 workers have been locked out since March 19.
BP said it’s looking for a deal that would safeguard jobs and also upgrade performance and safety at the refinery. On the union side, Eric Schultz, who heads USW Local 7-1, said they’ll push BP once more to end the lockout and abandon proposals tied to over 100 job cuts, reductions in pay, and shifts to bargaining and seniority rights.
BP shares in London ended Wednesday at 544.10 pence, slipping 0.46%. The stock went ex-dividend on Thursday. As for the Uzbekistan deal, it’s not a game changer for BP’s immediate earnings—that much is clear. Still, it fits with the company’s current playbook: cut debt, streamline, and bulk up upstream.
