Uzbekistan Replaces Gas Firm Head for 3rd Time in 1.5 Yrs

Uzbekistan has replaced the head of Uzbekneftegaz (UNG) for the third time in the last year and a half, at a time when it is preparing the national gas company for sweeping reforms.

Chairman Bakhodir Sidikov, who assumed the role only last February, has stepped down to take a new position elsewhere, UNG said in a statement on January 8. His replacement is Mehridden Abdullaev, formerly the deputy chairman of Uzbekistan’s Chamber of Accounts.

Before Sidikov, the company was led by Bakhrom Ashrafkhanov, now Uzbekistan’s deputy finance minister. Ashrafkhanov in turn in September 2018 replaced Alisher Sultanov, who now heads the newly formed energy ministry.

Abdullaev’s appointment comes as UNG prepares to implement decrees issued by Uzbek President Shavkat Mirziyoyev last year, requiring it to unbundle its various production, transportation and refining operations. The process is lagging behind schedule.

“It’s interesting that they brought in an outsider as he has no experience in the oil/gas sector to speak of but worked in private banks and in economic roles for the government on various levels,” London-based Prism Political Risk Management analyst Tobias Vollmer told NGW.

Both Sultanov and Sidikov built careers at UNG, while Ashrafkhanov’s background was at the Uzbek finance ministry.

“The decision is to be seen in context of the restructuring of the company and apparently managers with knowledge of the industry but without business/investment acumen haven’t managed to prepare UNG for the next steps, privatisation in the longer run,” Vollmer said.

After unbundling is completed, UNG plans to sell some of its non-core businesses to private investors and eventually hold an initial public offering of its stock.