There seems to be a growing interest in Turkmenistans oil reserves located in the Caspian Sea from foreign investors. The Business Recorder reported that deputy chairman of the state agency for the use and management of hydrocarbon resources said at an investment conference, Our forecasts show that investments in Turkmenistans sector of the Caspian Sea shelf are set to total $3.8 billion. That number is up from last years data that put investment figures at $2.1 billion.
Interest in these oil fields has increased due to some numbers that have been revealed recently, demonstrating just how much potential there is in the Turkmen sector of the Caspian Sea. The government estimated that 12 billion tons of crude oil and over 6 trillion cubic metres of natural gas exist within the 32 license blocks Turkmenistan comprises of. Two of these blocks are currently being developed, and three more are being explored for potential use in the near future.
The issue is that much of this reserve lies at great depths and will require a massive amount of investments to tap into. Dragon Oil, which is controlled by Dubais Emirates National Oil Company, has invested $2.4 billion in Turkmenistan since 2000 to find a way to reach the oil. Dragon Oils chief operating officer, Hussain Al Ansari, said that the company plans to invest up to $1 billion until 2015 to develop the Caspian Sea shelf. Other companies that are looking to invest are Malaysian oil-company PETRONAS, Chevron, ConocoPhillips and ExxonMobil. These companies are all vying for some of the so far undeveloped offshore blocks.
Turkmenistan is truly one of the emerging markets in the region. It is already Central Asias largest natural gas producer and also produces around 200,000 barrels of crude oil per day. However, Turkmen-run oil company Turkmenneft accounts for most of that output. To tap into all those other undeveloped blocks in the Caspian shelf will require foreign money from frontier investors looking to strike it rich. Previously, Turkmenistan had been very cautious about opening up their resources to foreign companies, but with the great potential it developed for economic growth, any hesitation towards outside investment has gone away. President Gurbanguly Berdimuhamedov has expressed his interest in improving investment conditions.
In May 2010, the Turkmen government adopted its National Program for Socio-Economic Development of Turkmenistan for 2011-2030. That program set in place plans to diversify their economy and increase competition, as well as recognising the need for market and institutional reforms to make those things happen. Programmes like these are the reason there was a $1.7 billion increase in foreign investments this year. The Turkmenistan economy heavily depends of the production of natural gas and oil. The government understands that for its economy to continue to grow, foreign investment is necessary to tap into more blocks. This opens the door for many companies looking to expand into the Caspian shelf. There are few places that are as resource rich and looking to create an attractive environment for foreign investment as Turkmenistan.
Interest in these oil fields has increased due to some numbers that have been revealed recently, demonstrating just how much potential there is in the Turkmen sector of the Caspian Sea. The government estimated that 12 billion tons of crude oil and over 6 trillion cubic metres of natural gas exist within the 32 license blocks Turkmenistan comprises of. Two of these blocks are currently being developed, and three more are being explored for potential use in the near future.
The issue is that much of this reserve lies at great depths and will require a massive amount of investments to tap into. Dragon Oil, which is controlled by Dubais Emirates National Oil Company, has invested $2.4 billion in Turkmenistan since 2000 to find a way to reach the oil. Dragon Oils chief operating officer, Hussain Al Ansari, said that the company plans to invest up to $1 billion until 2015 to develop the Caspian Sea shelf. Other companies that are looking to invest are Malaysian oil-company PETRONAS, Chevron, ConocoPhillips and ExxonMobil. These companies are all vying for some of the so far undeveloped offshore blocks.
Turkmenistan is truly one of the emerging markets in the region. It is already Central Asias largest natural gas producer and also produces around 200,000 barrels of crude oil per day. However, Turkmen-run oil company Turkmenneft accounts for most of that output. To tap into all those other undeveloped blocks in the Caspian shelf will require foreign money from frontier investors looking to strike it rich. Previously, Turkmenistan had been very cautious about opening up their resources to foreign companies, but with the great potential it developed for economic growth, any hesitation towards outside investment has gone away. President Gurbanguly Berdimuhamedov has expressed his interest in improving investment conditions.
In May 2010, the Turkmen government adopted its National Program for Socio-Economic Development of Turkmenistan for 2011-2030. That program set in place plans to diversify their economy and increase competition, as well as recognising the need for market and institutional reforms to make those things happen. Programmes like these are the reason there was a $1.7 billion increase in foreign investments this year. The Turkmenistan economy heavily depends of the production of natural gas and oil. The government understands that for its economy to continue to grow, foreign investment is necessary to tap into more blocks. This opens the door for many companies looking to expand into the Caspian shelf. There are few places that are as resource rich and looking to create an attractive environment for foreign investment as Turkmenistan.
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