The total reserves of hydrocarbon wealth of Turkmen sector Caspian sea is estimated at 18.2 billion tons of oil equivalent, according to Guvanch Agadjanov, head of the State Concern ‘Turkmen Nebit’ [Turkmen oil].
Turkmenistan intends to further enhance cooperation with foreign companies and international partners ready to offer new highly promising methods of geological exploration, advanced technologies in the field of horizontal well drilling, development of deposits with difficult mining and geological conditions, prevention of sanding and strengthening of filter zones in production wells, waterproofing work and elimination of behind-the-casing flows, he said during his presentation at the 4th session of Dubai interment forum of energy sector of Turkmenistan.
Agajanov further recalled that in 2017 on the coast of the Caspian sea at the Uzynada field, the concern’s own forces drilled the deepest well in the Central Asian region with a depth of 7,150 meters, from which an industrial inflow of oil condensate was obtained with a daily rate of 200 tons and 500 thousand cu m of gas.
Currently, more than a dozen new wells have already been drilled at the field with similar results and are being developed on an industrial scale.
“The discovery of this field opens up broad prospects for the exploration of hydrocarbons not only on the land of Turkmenistan, but also greatly increases the potential for discovering new fields on the shelf of the Caspian Sea itself. And this, in turn, increases the attractiveness of foreign investment in the development of promising licensed blocks”, he said.
Besides from upstream sector, Turkmenoil’s CEO mentioned some opportunities for partnership in downstream.
According to him, Turkmenistan plans to realize several refinery projects such as construction of diesel fuel hydrotreatment unit, delayed coking and catalytic cracking unit with desulphurization and hydrogen production unit.
At present, the operations of Concern is concentrated in the West of Turkmenistan. Currently, the concern’s petrol assets are located in more than 30 fields, which are at various stages of development. The number of operating oil and gas wells exceeds 2,300 units.
Regulatory framework
The cooperation in oil and has sector both onshore and in the Turkmen sector of the Caspian Sea with foreign companies, is carried out within the framework of the Law of Turkmenistan “On Hydrocarbon Resources” and concluded Production Sharing Agreements.
Additionally, this law establishes very favorable fiscal conditions for investors, in comparison with the laws of post-Soviet and other countries.
“The law provides for only one type of tax – income tax and 2-3 payments for the rights to use natural resources, relieving investors from all other mandatory payments (fees, duties, etc.)”, told Agajanov.
The Law of Turkmenistan “On Hydrocarbon Resources” is based on the international legal framework, which includes international treaties and agreements with the participation of Turkmenistan, in particular, the Washington Convention for the Protection of Investments of 1905, the Energy Charter Treaty, the New York Convention on the Enforcement of Arbitral Awards of 1958, bilateral international agreements on investment protection with more than 30 countries of the world and other international treaties of Turkmenistan.
Successful PSA experience with Dragon Oil
Head of ‘Turkmennebit’ mentioned the cooperation with Dragon Oil, operating in Turkmenistan since 1999 on PSA basis. Since commencing the operations the company has invested over US $ 8 billion of investments and has produced more than 54 million tons of oil.
In July 2022, the Agreement was extended until May 2035.
The Dragon Oil plans to drill 4 horizontally directional wells with a depth of about 4,700 meters on the structure of the Cheleken dome.
“Drilling these wells will reduce the commissioning time compared to offshore drilling, minimize the cost of connecting to the existing infrastructure, evaluate and develop the proven reserves of this structure, and increase oil production”, said Agajanov.
Moreover, according to the agreement on seismic work with Dragon Oil dated October 2022, the subcontractor company BGP performs 3D seismic work, 60% of the work has been completed, completion of work is expected in mid-May 2023. ///nCa, 27 April 2023