Turkmenistan, India Sign Landmark MoU for Oil and Gas Cooperation

Ashgabat, 5 April 2008 (nCa) --- Turkmenistan and India signed Saturday a framework memorandum of understanding for cooperation in the oil and gas sector, creating a wide channel for Indian companies to enter the hydrocarbon sector of Turkmenistan.

The signing ceremony took place on conclusion of negotiations between President Berdymuhamedov of Turkmenistan and Vice President Hamid Ansari of India.

“Participation of major Indian companies and enterprises in Turkmenistan hydrocarbon sector would serve the interests of both the countries,” said President Berdymuhamedov.

He said, “Turkmenistan, as a major producer and exporter of hydrocarbon resources, is interested in developing cooperation with India.”

Vice President Ansari was equally enthusiastic about the MoU and the possibilities it may unlock.

“The framework MoU would pave the way for Indian companies to participate in the hydrocarbon sector of Turkmenistan,” he said.

Ansari underlined, “Turkmenistan is geo-strategically located and with its vast hydrocarbon resources it has an important role to play in the world energy security.

India with its vast requirement of energy and dependence on imports to meet it is Turkmenistan’s natural partner.”

He said that India companies like OSGC, OVL, GAIL, and IOC, with their vast expertise, experience and substantial capital were willing to partner with Turkmenistan in upstream and downstream activities.

Indian companies, said Ansari, have also developed expertise in shallow water, offshore and onshore activities

The MoU was signed by E Ahammad, Indian state minister for external affairs, and Tachberdy Tagiyev, Turkmen deputy prime minister for oil and gas on behalf of their respective governments.

TAPI

TAPI – (Turkmenistan, Afghanistan, Pakistan, India Gas Pipeline Project) – also featured prominently during the talks.

After wavering between to be or not to be for a couple of years, TAPI seems to be picking some strength again.

Speaking of TAPI, President Berdymuhamedov said Saturday, “The implementation of this project would not only serve the participating countries but will also strengthen and expand cooperation in the whole of Asia.”

Broader cooperation

Hydrocarbon sphere and TAPI are just two of the areas where Turkmenistan and India feel mutual interest.

There are a number of other sectors where both the countries are increasing mutual interaction.

India has completed feasibility study to set up an IT centre at the Ashgabat state university. A research centre established by India at the Ashgabat polytechnic institute is working already.

The cultural exchange programme, science and technology agreement, agreement on trade and economic cooperation, and comprehensive education agreement are under active consideration

Turkmenistan Airlines operates ten flights to India.

India offers short- and medium-term courses to Turkmen students in a wide range of disciplines. Ansari said during his talks with Berdymuhamedov that India was willing to offer tailor-made courses to Turkmen students.

There is huge potential for mutually beneficial interaction and there is matching political goodwill. What is lacking is reliable rail and road connection between the two countries.

“Improving connectivity is important for enhancing bilateral trade between India and the countries of Central Asia, especially Turkmenistan,” said Ansari.

He was confident that the forthcoming visit of Berdymuhamedov to India would “give shape to the vast potential that exists for sustained and mutually rewarding partnership” between the two countries.

“India considers Turkmenistan an extended neighbour, a natural ally and a key partner in Central Asia,” Ansari underlined.