Fergana refinery increases processing of local feedstock

At the Fergana Oil Refinery, Uzbek oil constitutes almost 90 percent of the total oil refined.

This increase was made possible as a result of a growth in the rate of production of local raw materials by SEG, which has owned 103 fields in Uzbekistan since the end of 2019. Saneg is investing significant funds in increasing the ratio of own raw materials in the country.

Whilst during 7 months of 2020 the import of foreign oil was 37%, for the same period of 2021 – it was 24%. And after 7 months of the current year, the share of imported oil in the refining structure of the Federal Refinery does not exceed 4%. Alongside the reduction in imports of foreign oil, the volume of oil produced in Uzbekistan is increasing.

One of the largest oil and gas companies in Uzbekistan, Sanoat Energetika Guruhi (Saneg), which acquired the state share of the FOR in May this year, produced 276,000 tons of liquid hydrocarbons in the first half of the year, which is 9% higher than for the previous year. All raw materials extracted by the company were sent for processing to the FOR.

“Increasing the extraction and processing of local raw materials plays a big role in the development of the economy of the new Uzbekistan. Previously, Fergana Oil Refinery mainly processed imported oil from Kyrgyzstan and Kazakhstan. Now we are processing oil produced from the regions of our country - Mubarek, Karshi and Andijan. Our plans include a significant increase in the workload of the enterprise. By the end of next year, we plan to load the refinery with 2 million tons of oil. Fergana Oil Refinery has not experienced such workload for a long time,” said Tulkin Yusupov, Executive Director of Saneg.

In the future, the FOR plans to reduce the processing of imported oil to 0% and focus entirely on the processing of oil produced in Uzbekistan.