9 Jan 2024 15:44

Turkmenneft, Turkmengaz broadening cooperation with ADNOC, Dragon Oil

ASHGABAT. Jan 9 (Interfax) - Turkmenistan's state oil and gas concerns, Turkmenneft and Turkmengaz, have signed memorandums of cooperation with state companies from the United Arab Emirates, the Neutral Turkmenistan newspaper reported.

Turkmengaz and the Abu Dhabi National Oil Company (ADNOC) signed a memorandum regarding the intention of the parties to attract strategic partners for the development of the third stage of the Galkynysh field.

The memorandum also provides for the possible participation of these partners in energy projects, including the construction of gas pipeline infrastructure, to supply natural gas not only to the countries of the region, but also to other states.

The report also said the Turkmenistan-Afghanistan-Pakistan-India or TAPI gas pipeline currently under construction would give a major impetus to the socio-economic development of the entire Asian region. It is expected that in time the third stage of development of the giant Galkynysh field will provide gas for this trunkline.

Turkmengaz and ADNOC also signed a memorandum to explore opportunities for scientific, technical and economic cooperation in reducing methane emissions.

Turkmenneft and Dragon Oil (Turkmenistan) Ltd., a subsidiary of Dragon Oil, which is wholly owned by the Dubai government, also signed a memorandum on cooperation.

The documents were signed during a visit by People's Council Chairman Gurbanguly Berdimuhamedov to the UAE.

Berdimuhamedov said at a meeting in Dubai with the Chairman of the Board of Directors of Dragon Oil, Syed Al Tayer that Turkmenistan's oil and gas industry priorities include increasing the volume of oil and gas production and refining as well as the export of Turkmen energy resources and finished products and petrochemical products. Turkmenistan, with its huge hydrocarbon resources, advocates mutually beneficial cooperation with the world's leading companies engaged in their exploration, development and production. They include Dragon Oil, which has a track record as a responsible and reliable partner, he said.

Dragon Oil, headquartered in Dubai, has been operating in Turkmenistan since 2000 under a production sharing agreement to produce hydrocarbons at the Cheleken contract area in the Caspian Sea.

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.