19 Mar 2024 18:38

Turkmenistan seeks foreign investors for Caspian shelf exploration and development - ambassador

MOSCOW. March 19 (Interfax) - Turkmenistan will seek foreign companies to explore and develop fields on its Caspian Sea shelf, the country's ambassador to Russia, Esen Aydogdyev, said at a briefing.

"President Serdar Berdimuhamedov has given instructions to continue to ensure dependable natural gas supplies to domestic and foreign consumers. The emphasis is on the need for the phased commercial development of the Galkynysh gas field, the world's second largest, and seeking foreign companies to explore and develop the Caspian Sea shelf," Aydogdyev said.

The Turkmen Energy Investment Forum (TEIF) will take place in Paris on April 24-25. The focus of the Forum will be attracting investment in offshore Blocks No. 21 and 23, West Cheleken, the optimization of production from mature fields, and next-phase developments of the giant Galkynysh field.

The purpose of the event is to expand the opportunities for attracting foreign direct investment in all aspects of Turkmenistan's energy sector and to strengthen regional dialogue on further sustainable development of the energy sector. Upstream, midstream and downstream opportunities will also be addressed. The Forum will bring together leading national and international energy companies, as well as experts.

The country's hydrocarbon resources are estimated at over 71 billion tonnes of oil equivalent, that is over 20 billion tonnes of oil and over 50 trillion cubic meters of natural gas. Turkmenistan holds the world's fourth-largest proven natural gas reserves, after Russia, Iran, and Qatar.

China is currently the biggest consumer of Turkmenistan's gas. Turkmenistan currently supplies China with over 30 billion cubic meters per year through the three lines, A, B, and C of the Central Asia Gas Pipeline system and, upon completion of the fourth D line, annual Turkmen natural gas supply will reach a contractual 65 bcm per year. Turkmenistan also supplies gas to Azerbaijan, Iran, and Russia.

Turkmenistan and its partners in the Turkmenistan-Afghanistan-Pakistan-India or TAPI gas pipeline project continue to support the implementation of this mega-project. The 1,853-km pipeline will deliver up to 33 bcm per year of natural gas from Galkynysh to three offtake points in Afghanistan, three offtake points in Pakistan, and a final off-take point at the Pakistan-India border to supply the Indian market.

The Galkynysh oil and gas condensate field, which is the second largest in the world, is in pilot production. The Galkynysh reserves, including the Yashlar and Garakel fields, are estimated at 27.4 trillion cubic meters of gas. Current production is 20 bcm and projected output 30 bcm. The field will be developed in seven stages, with production increasing by 30 bcm annually during each one.

Turkmenistan is actively developing its offshore fields in the Caspian Sea and onshore in the Balkan region. Currently, a number of international oil companies are producing oil and gas from contractual areas in the Caspian Sea, among them: ENI, Dragon Oil, and Petronas.

The Forum in Paris is one of a series of events to be held by the national energy companies of Turkmenistan this year, and marks new approaches to investment attraction. Currently, the UK-based GaffneyCline is working to support to Turkmennebit in preparation of investment packages for the Turkmen sector of the Caspian Sea.