Uzbekistan Renationalizes Fergana Oil Refinery

Tashkent, Uzbekistan (UzDaily.com) — The State Assets Management Agency of Uzbekistan is once again the sole founder of Farg'ona neftni qayta ishlash zavodi (Fergana Oil Refinery, FNPZ), according to the country's state enterprise registry. Private industrial conglomerate Sanoat Energetika Guruhi — known as Saneg — which had held a 41.5% stake, no longer appears among the plant's founders. No official statement has been issued explaining the circumstances of Saneg's exit or the status of previously agreed terms.

The reversal marks a significant chapter in what had been a flagship privatization. In May 2022, the State Assets Management Agency announced the sale of a 100% stake in FNPZ to Saneg for US$100 million, with the transfer of ownership structured in stages proportional to payments made. As of August 2024, the state retained 58.5% while Saneg held 41.5% — the last publicly confirmed ownership split before the investor's disappearance from the registry.

Saneg had previously maintained that it was fulfilling its payment obligations and investment commitments under the contract. The company was also a participant in a major modernization program that envisioned new refining technologies, increased crude processing depth, Euro-5 standard fuel production, and the development of hydrogen manufacturing capacity — a project valued at US$389.3 million as of Q2 2024, with foreign partners Gas Project Development Central Asia and Belvor Holdings Limited listed as participants.

The backdrop to Saneg's exit became clearer in January 2026, when the Uzbek government moved to financially stabilize the corporate group encompassing Enter Engineering, Eriell Group, and Saneg. Among the measures under consideration at the time: divesting non-core assets and preparing proposals to attract new investors to complete strategic projects, including the Fergana refinery modernization.

The financial picture at FNPZ itself is stark. While the plant recorded cumulative net profit of 557.3 billion Uzbek soums between 2022 and the end of that period, it swung to a loss of 538.1 billion soums in 2025 alone — a deterioration that provides further context for the ownership restructuring.

The Fergana refinery remains a strategically critical asset. The only producer of lubricating oils in Uzbekistan, the plant also manufactures high-octane gasoline, diesel fuel, aviation kerosene, bitumen, paraffin, and a range of other petroleum products, cementing its position as a cornerstone of the country's energy supply chain.

The fate of the stalled modernization program — and whether new investors will be sought to complete it — remains unanswered.