Turkmenistan Wants to Boost Oil and Gas Extraction

Turkmenistan intends to boost extraction and export of oil in the next few years, a Turkmen paper has said. It said the country wanted to invest some 60bn dollars to develop the sector. The paper said the country had “immense” resources of oil and gas and can export them to any destination and that export to China via Uzbekistan and Kazakhstan was one of the options under consideration. The following is an excerpt from an article by V. Obramenko, published by Neytralnyy Turkmenistan on 6 January; subheadings inserted editorially.

When we look at prospects for Turkmenistan’s fuel sector, we see that its entire territory, including areas adjoining the Caspian Sea, are practically promising zones from the point of view of oil and gas exploration and extraction and their export to the world markets.

Turkmenistan intends to boost oil and gas extraction

Turkmenistan is one of few countries in the world which have immense hydrocarbon resources. Local and international experts have estimated hydrocarbon reserves at 45.4bn tonnes in oil equivalent. No less hopes are also being pinned on the Turkmen shelf of the Caspian, hydrocarbon resources of which are estimated at 18.2bn tonnes in oil equivalent.

Turkmenistan has also the capacity of sharply increasing oil and gas extraction and export to the world markets within the next few years. For instance, the national programme envisages annual extraction of 100m tonnes of oil and 240bn cu.m. of gas by 2020. Such increase will undoubtedly boost the economic and social development in the country.

In order to achieve the targeted level of hydrocarbon extraction and export, it is necessary to attract a considerable amount of foreign investment. Over 60bn dollars will be invested into the country’s oil sector up to 2020, with 40 per cent of it coming directly from foreign investors.

[Passage omitted: a number of foreign companies are involved in exploration and development of oil and gas fields]

Turkmenistan’s geographical location makes it possible to export oil and oil products practically to all corners of the world: in western direction – to the Black Sea region and Mediterranean basin via Makhachkala, Novorossiysk and Batumi; in northern direction – to northwestern Europe via Astrakhan and Kerch; and in southern direction – to the Islamic Republic of Iran and further to the Gulf and Southeast Asia.

Export of gas to Pakistan, China under consideration

In order to use its energy potentials effectively, Turkmenistan needs to develop its export transportation networks and multi- version export schemes. The project for the construction of a gas pipeline from Turkmenistan to Pakistan through Afghanistan is now on the agenda. An accord has been reached on this project between the governments of Turkmenistan, Afghanistan and Pakistan. The British Penspen company has just completed the feasibility study of the project.

Speaking at a recent meeting of the Cabinet of Ministers, Turkmen President Saparmyrat Turkmenbasy [Nyyazow] mentioned the optional construction of gas pipeline to China with possible shortest routes via Uzbekistan and Kazakhstan.

[Passage omitted: currently the Turkmen gas is exported to Russia, Ukraine and Iran; local power stations are using natural gas to generate electricity for export]