BP
BP is adding a new map pin
BP said Wednesday it entered a production-sharing agreement for six blocks in Uzbekistan’s North Ustyurt region — its first project in the country. BP bought in with a 40% stake, while SOCAR and Uzbekneftegaz each keep 30%, and SOCAR stays in the operator’s seat.
Why investors are paying attention
This is the kind of deal that won’t magically move the stock like a blockbuster earnings beat, but it does matter. BP is still trying to prove it can keep the production machine humming while also finding new places to grow. Uzbekistan gives it another international foothold, which is corporate shorthand for: “We’d like some new barrels, please.”
The catch: production still has a headache
The timing is a little ironic. BP also said it expects reported upstream production to decline in 2026 because of ongoing Middle East disruptions, even though underlying output should stay roughly flat versus 2025. For Q2, it’s bracing for sequential declines thanks to seasonal maintenance in the Gulf of America and geopolitical messiness in the Middle East.
- BP shares were down about 0.9% to $44 at the time of publication.
- The stock also sits on a Hold rating overall, even though Argus, RBC, and Scotiabank all got a little more upbeat recently.
- BP expects oil and gas price swings to keep making life annoying for PSA-linked contracts.
Big picture: BP is trying to play offense in Uzbekistan while still dealing with a defense-heavy production outlook everywhere else. That’s not exactly smooth sailing, but in energy land, “another project” is usually better than “no project.”