Turkmenistan to strengthen control over foreign oil and gas firms

Turkmenistan, Ashgabat, June 27 / Trend H. Hasanov / Turkmen President Gurbanguly Berdimuhamedov has urged control over foreign companies operating in the energy sector in the country, the Turkmen government said today. This issue was raised at the government meeting. The report was presented by Deputy Prime Minister, director of the State Agency for Management and Use of Hydrocarbon Resources under the President Yagshygeldy Kakayev. The information on the outcome of working visits to Mary and Lebap regions undertaken on behalf of the president was stressed. Galkynysh field is being developed in these regions. It is the second largest field in the world, as well as hydrocarbon deposits on the right bank of the Amu Darya. The raw materials are supplied to one of the world's longest gas pipelines to China via Kazakhstan and Uzbekistan. "Stressing that the successful and timely implementation of the projects will help strengthen the country's economic power, the president urged deputy prime minister to control the activities of subordinate agencies and foreign companies working in this direction," a statement said. The Turkmen leader said that the development of the country's fuel and energy complex is among the priority areas of public policy. Huge funds are allocated to diversify the industry. The investments are attracted for implementing large-scale projects, including oil and gas extraction and processing. The companies from Great Britain, Russia, Germany, Italy, Malaysia, UAE, Canada and China are working in Turkmenistan on the basis of contracts such as production sharing agreements (PSAs). involved, especially Petronas, Dragon Oil, Burried Hill, RWE, "Itera", "Zarubezhneft" are involved in the development of the Turkmen section of the Caspian Sea. ENI (having Burren Energy's shares), CNPC operate onshore. Service contracts are being applied in Galkynysh industrial development. Turkmengaz state concern is the contractor. The deals were concluded with Gulf Oil & Gas Fze, Petrofac International LLC (UAE), CNPC Chuanging Drilling Engineering Company (PRC) and a consortium of LG Internatinal Corp and Hyudai Engineering (South Korea) totaling $9.7 billion in December 2009. Do you have any feedback? Contact our journalist at agency@trend.az