Elvira Kadyrova
Awaza, 18 September 2025 – The prospects for the development of Turkmenistan’s oil and gas sector were presented by State Minister and Chairman of the State Concern “Turkmengaz” Maksat Babaev at the Turkmenistan Investment Forum TIF 2025 in the Awaza National Tourism Zone. He highlighted the country’s investment attractiveness and its status as a reliable partner.
Maksat Babaev noted that the total volume of Turkmenistan’s hydrocarbon resources is estimated at 71.2 billion tons of oil equivalent.
The speaker also mentioned the super-giant Galkynysh field, which is the second largest in the world. Together with the Garakel fields, it contains up to 27.4 trillion cubic meters of natural gas. The development of the Galkynysh field is being carried out in seven stages, with the first stage already completed through the construction of gas purification and processing plants. Active negotiations are currently underway for the development of the second and third stages.
Among the priority projects the “Turkmengaz” concern offers the following:
– Development of the 2nd and 3rd stages of the Galkynysh field;
– Construction of gas compressor and booster stations;
– Establishment of underground gas storage facilities;
– Implementation of SCADA automation systems to enhance the efficiency of production process management.
– Depp processing of natural gas
These initiatives aim to modernize infrastructure and increase gas production and processing capacities, opening broad opportunities for international cooperation.
Maksat Babaev emphasized that Turkmenistan has established a robust legislative framework to attract foreign investment in the oil and gas sector. Key laws of particular importance to foreign investors include:
– The Law “On Hydrocarbon Resources”;
– The Law “On Foreign Investments”;
– The Law “On Investment Activities”.
These laws provide legal protection for investors and offer flexible forms of cooperation for oil and gas operations, including:
– Production Sharing Agreements;
– Concession Agreements on royalty and tax terms;
– Agreements on Joint activities
– Contracts for Services at risk.
Babaev highlighted several aspects of foreign partners’ activities related to oil and gas operations:
- The Processing License is issued for a period of 20 years. The term of the Processing License can be extended for 10 years in accordance with the terms of the License and the Agreement.
- The conditions for carrying out Petroleum Operations, including the conditions for holding a tender for the purchase of goods, performance work and provision of services related to the performance of these works are determined by the Contract.
- The Contractor has the right to freely dispose of its share of Hydrocarbon resources both in Turkmenistan and abroad
“Our experience in collaborating with foreign companies has proven that Turkmenistan demonstrates a responsible approach not only in attracting investments but also in fulfilling its obligations. This enhances our country’s reputation as a reliable partner in investment projects,” Maksat Babaev concluded in his speech. ///nCa, 18 September 2025