Energy & Subsoil Use Licensing in Uzbekistan

Production-Sharing Agreements (PSAs)

A main vehicle for foreign participation in Uzbek oil and gas. Tax treatment is in Chapter 69 of the Tax Code. Oil and gas extraction, processing and sale also need a licence from the Inspectorate for Control of the Use of Electricity, Oil Products and Gas (Law No. ZRU-701, annex). PSA terms cover exploration rights, production sharing ratios, cost recovery, taxation, and repatriation. Bond Stone advises on PSA negotiation, documentation, and compliance from preliminary terms through to full agreement execution.

Subsoil Use Permit

Geological study and mining operations require subsoil use permits under the Law on Subsoil No. ZRU-987 of 31 October 2024, in force since 2 February 2025, which replaced the 1994 Law on Subsoil. Permits are issued by the Subsoil Use Centre under the Ministry of Mining Industry and Geology. Main permit types: geological study and extraction of solid minerals; reconnaissance, geological study and extraction of hydrocarbons. Permits are granted first come, first served or by the additional methods the Law provides. Only Uzbek citizens, residents and legal entities formed under Uzbek law may apply, so foreign companies operate through locally registered subsidiaries or joint ventures.

Renewable Energy Approvals

Solar, wind and hydro projects need a generation licence, land allocation and grid connection with JSC National Electric Networks of Uzbekistan. Large projects often use the PPP framework and a power purchase agreement.

Electricity Market Licensing

Generation, transmission, distribution, storage, supply, trading, central purchaser and market operator licences are issued by the Agency for Development and Regulation of the Energy Market (Law No. ZRU-701, annex). Grid connection needs a separate agreement with the network company.

CDM & Carbon Credits

Bond Stone has advised on Clean Development Mechanism projects under the Kyoto Protocol in Uzbekistan — project methodology approval and designated national authority filing. Carbon market rules are developing under the Paris Agreement.

Mining Permits — Gold, Copper, Uranium

Uzbekistan is a significant gold and copper producer with growing rare earth interest. Extraction permits for solid minerals are issued by the Subsoil Use Centre under the Ministry of Mining Industry and Geology. Navoi Mining and Metallurgical Company (NMMC) leads in gold, the state enterprise Navoiyuran in uranium (Cabinet of Ministers Resolution No. 170 of 30 March 2021). Joint ventures with state producers are one entry route for large-scale mining.