The State Oil Company of Azerbaijan (SOCAR) intends to start production of chemical reagents and oil and gas equipment in the Kashgadarya region of Uzbekistan, Azernews reports.

According to information cited by the Uzbek press, it is planned to create production of chemicals and drilling muds in Uzbekistan in order to replace imports. Also under consideration is the development of equipment for well workover and field development, as well as the provision of services for the storage and distribution of components of drilling and plugging fluids used in drilling wells.

It is reported that the expert groups of Uzbekneftegaz and SOCAR's Scientific Research Design Institute Neftgaz discussed the preparation of the initial business plan of the project.

In addition, the Uzbekneftegaz working group familiarised itself with the activities of testing laboratories that have received international certificates for drilling and cementing fluids.

Neftgaz Research Design Institute plans to build a testing laboratory in Uzbekistan to study drilling and cementing solutions.

Following the negotiations, the members of the joint working group agreed on further stages of the project implementation.