Uzbekneftegaz launches UNG Burg’ilash LLC to expand domestic oil and gas drilling operations

Uzbekneftegaz just made a significant structural move. The state energy company has formally created UNG Burg’ilash LLC—a new, fully state-owned drilling subsidiary—to expand oil and gas exploration across Uzbekistan. According to the company’s press service, the new venture will start with the Ustyurt Plateau and other high-potential regions, operating under international drilling standards.

Uzbekneftegaz establishes national drilling subsidiary

Rather than leaning on outside contractors or third-party service providers, Uzbekneftegaz chose to build its own dedicated drilling arm from scratch. UNG Burg’ilash will be fully owned by the parent company, giving Uzbekneftegaz direct control over drilling operations in its key target regions.

The Ustyurt Plateau is where initial activity will be concentrated—long considered one of the country’s most promising areas for hydrocarbon exploration. The announcement came straight from Uzbekneftegaz’s press service. This isn’t a pilot program or a trial run. It’s a top-level strategic decision.

Uzbekneftegaz says the goal is to speed up exploration of new hydrocarbon reserves while keeping oil and gas production stable across the country.

Why Uzbekneftegaz created the new company

This isn’t just about adding another entity to a corporate org chart. Uzbekneftegaz says the goal is to speed up exploration of new hydrocarbon reserves while keeping oil and gas production stable across the country.

Technology is central to the logic. The company wants to bring modern deep-well drilling methods into its operations faster than third-party contracts would allow, and a dedicated subsidiary gives Uzbekneftegaz direct say over which technologies get deployed and when. That kind of operational control is hard to replicate through external vendors.

There’s also a longer-term workforce angle. Uzbekneftegaz plans to establish a national drilling school through UNG Burg’ilash—building local technical expertise rather than relying indefinitely on foreign specialists. That institutional knowledge compounds over time. Bringing drilling in-house and raising operational standards also positions Uzbekneftegaz to perform more effectively, both domestically and relative to regional peers.

Equipment procurement and operational plans

UNG Burg’ilash isn’t starting small. The company plans to purchase 21 modern drilling rigs—ZJ-70 and ZJ-90 models—each equipped with digital control systems and capable of drilling to depths of up to 29,528 feet (9,000 meters). That puts them squarely in the range needed for serious deep-well exploration.

Deliveries are set to begin in October 2026, giving the company a clear runway to plan early projects. Large-scale drilling activity is still a couple of years out; for now, the focus is on setup and preparation.

Beyond the rigs, UNG Burg’ilash plans to gradually build out a broader equipment base—high-pressure cementing fleets, compressor and nitrogen units, well testing and development equipment, specialized vehicles, and other machinery for full-cycle drilling operations. The phased approach points to a deliberate rollout rather than an all-at-once deployment.

Expected outcomes and projected impacts

Uzbekneftegaz has laid out a clear set of expected results. On the technical side, the company is targeting better well construction quality, shorter drilling timelines, and lower operational risks—gains that, taken together, should push production efficiency higher across UNG Burg’ilash’s activities.

These aren’t minor targets. Drilling timelines and well quality directly affect how quickly reserves come online and how cost-effectively they’re developed. Reducing operational risk matters, especially in deep-well environments, where complications tend to be expensive and slow to resolve.

The employment impact is worth noting. UNG Burg’ilash is projected to create more than 1,000 new positions—a real contribution to employment in Uzbekistan’s energy sector, reflecting both the scale of planned operations and the range of skills a full-service drilling company demands. The subsidiary’s ambitions don’t stop at the border, either: Uzbekneftegaz says UNG Burg’ilash plans to offer drilling services in neighboring countries and other international markets, generating revenue while extending the company’s operational footprint.

International expertise and industry partnerships

Building a national drilling company doesn’t mean going it alone. UNG Burg’ilash plans to recruit engineers and specialists with international experience, blending outside knowledge with what’s being developed locally—a common approach in sectors where real technical depth takes years to accumulate.

Collaboration with leading international oilfield service providers is also part of the plan, spanning drilling fluid preparation, cementing, logging, drill bit supply, and well testing. Working alongside established global players gives UNG Burg’ilash access to proven methods and equipment from day one. This international orientation fits a broader pattern: Uzbekistan’s oil and gas sector has been actively pursuing modernization and foreign partnerships for several years now, and UNG Burg’ilash is consistent with that direction.

Equipment deliveries starting in October 2026

UNG Burg’ilash LLC is a wholly owned Uzbekneftegaz subsidiary built to handle oil and gas drilling domestically—and eventually regionally. It’ll operate 21 advanced drilling rigs capable of reaching 29,528 feet (9,000 meters), with equipment deliveries starting in October 2026. The company is targeting better well quality, shorter drilling timelines, lower operational risk, and over 1,000 new jobs. A national drilling school is also in the works, alongside partnerships with international oilfield service providers, all aimed at building lasting technical capacity in Uzbekistan’s energy sector.

Kelly Lippke

Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.