At the International Forum on Attracting Foreign Investments to Turkmenistan’s Economy (TEIF 2025), Steven Travers, Region Director at GaffneyCline TM Energy Advisory, delivered a presentation highlighting the robust growth and investment potential of Turkmenistan’s offshore energy sector. His slides underscored the country’s flourishing oil and gas industry, driven by significant foreign investments and ambitious future plans.
Current Production Operations
Petronas (Block I)
Since July 1996, Petronas has invested $11 billion in the Turkmen sector of the Caspian Sea. Its Production Sharing Agreement (PSA) was recently extended to 2028. Petronas operates the Makhtumuli, Diyarbekir, and Garagol Deniz gas-condensate fields, supported by the Kiyanly Gas Processing Plant and Terminal, which processes 5 billion cubic meters (bcm) of gas annually. This infrastructure plays a critical role in meeting growing regional demand.
Dragon Oil (Cheleken Block)
Dragon Oil has produced over 400 million barrels of crude oil since 2000, with investments exceeding $8 billion. The company operates the Dzheitun (Lam) and Dzhygalybeg (Zhdanov) oil and gas fields. Looking ahead, Dragon Oil is planning gas monetization initiatives starting in 2027.
Turkmenistan Oil & Gas Outlook
Turkmenistan’s oil and gas sector is poised for stability and growth. Annual investments are expected to remain steady at approximately $700 million until the end of the decade, with a significant increase anticipated thereafter due to planned gas investments. Key developments include:
- Galkynysh Phase2 will boost gas export capacity by 30 billion cu m. More than 90% of gas exports go to China.
- Progress being made on export diversification: 33 billion cu m per annum TAPI (Turkmenistan – Afghanistan-Pakistan-India
- Galkynysh Phase3 expected to be commissioned in the near future.
A Growing Opportunity
When GaffneyCline first engaged in Turkmenistan in 1992, foreign operations were limited to Larmag (now Dragon Oil), with production below 10,000 barrels of oil per day (bopd). Today, the sector has transformed dramatically:
- Dragon Oil: Produces approximately 80,000 bopd.
- Petronas: Has the potential to produce 30-40,000 bopd of oil and condensate.
- Eni: around 10,000 bopd.
This remarkable growth reflects Turkmenistan’s emergence as a key player in the global energy market, supported by substantial foreign investment and strategic infrastructure development. ///nCa, 24 April 2025