Turkmen president calls for intensifying energy co-op in Caspian Sea

12 August 2019 14:14 (UTC+04:00)

By Trend

While delivering speech at the conference entitled "Caspian Sea: in the interests of developing international economic cooperation" in Turkmenistan’s Avaza tourist zone, President of Turkmenistan Gurbanguly Berdimuhamedov outlined the priorities for cooperation in the energy sector, Trend reports on Aug. 12 referring to the Turkmen Dovlet Khabarlary state news agency.

“In case of effective use, big hydrocarbon reserves in the bowels of the Caspian Sea and adjacent territories may give a strong energy impulse to the dynamic and high-quality growth of the national economies of both the Caspian countries and neighboring countries, as well as ensure the conditions for creating new production enterprises and construction of industrial facilities," the Turkmen president said.

“The energy of the Caspian Sea must become the basis for the dynamic development of the economy of the region,” he added.

The president stressed that this would entail the creation of new job places, improvement of the quality and standard of living of people and the construction of social infrastructure.

“Industrial growth, mainly associated with an increase in hydrocarbon production, may fundamentally change the entire economic situation at this part of the world, integrate the Caspian region into the global economic area as an equal and effective partner,” the president added.

Some 32 licensed blocks with projected reserves of 11 billion tons of oil and 5.5 trillion cubic meters of gas from the Turkmen part of the Caspian Sea (excluding already contracted blocks) were put up for an international tender.

The priority is to conclude production sharing agreements (PSAs).

According to the local estimates, more than 80 percent of resources of the Turkmen part of Caspian Sea are located in sediments at depths above 3,000 meters.

Turkmenistan annually produces about 10 million tons of oil. Oil production is ensured by Turkmen Oil state concern and PSA-based companies from the United Kingdom, Malaysia and the United Arab Emirates.

Such international companies as Petronas, Dragon Oil, Buried Hill, RWE Dea AG, Areti and Eni are involved in the development of the Turkmen part of the Caspian Sea. The negotiations are underway with the companies from Europe, US and Asia.

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