TURKMENISTAN ENERGY SECTOR NOTES (DECEMBER 1999)

 

14 JAN 00

SOURCE US EMBASSY ASHGABAT

 

1.    THIS CABLE SUMMARIZES DEVELOPMENTS IN THE ENERGY

SECTOR OF TURKMENISTAN FROM OPEN SOURCES, PRIMARILY

FROM THE LOCAL PRESS, AND COVERS ITEMS NOT INCLUDED

IN OTHER EMBASSY REPORTING.

 

2.  CONTENT:

 

-- GOTX ANNOUNCES PRODUCTION FIGURES FOR 1999

 

-- GOTX DESIGNATES NEW GAS FIELD FOR TRANS-CASPIAN

PIPELINE

 

-- NAIP GAS PROCESSING FACILITY UPDATE

 

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GOTX ANNOUNCES PRODUCTION FIGURES FOR 1999

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3.  ACCORDING TO OFFICIAL DATA RELEASED JANUARY 6,

2000 IN 1999 TURKMENNEFT PRODUCED 7 MILLION TONS OF

OIL, ONE MILLION OF WHICH WAS PRODUCED BY UKRAINIAN

AND WESTERN COMPANIES WORKING UNDER PRODUCTION

SHARING AGREEMENTS.  GAS PRODUCTION WAS 22.8 BCM

WHICH IS TWO TIMES GREATER THAN IN 1998 DUE MOSTLY TO

THE TEMPORARY RESUMPTION OF GAS DELIVERIES TO UKRAINE

IN THE FIRST FIVE MONTHS OF THE YEAR.  IN 2000 THE

GOTX EXPECTS TO PRODUCE MORE THAN 33 BCM GAS OF WHICH

20 BCM WILL BE EXPORTED TO RUSSIA AND 5 BCM TO IRAN.

IN 1999 TURKMENISTAN EXPORTED 10.7 BCM OF GAS TO

UKRAINE AND IRAN.  TURKMENISTAN PLANS TO PRODUCE TEN

MILLION TONS OF CRUDE OIL IN 2000 YEAR - 4.2 MILLION

TONS MORE THAN IS NEEDED FOR DOMESTIC CONSUMPTION.

 

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GOTX DESIGNATES GARAJAOVLA GAS FIELD FOR TRANSCASPIAN

PIPELINE

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4.  THE GOTX ANNOUNCED DECEMBER 21 THAT THE

KARAJAOVLA GAS FIELD IN SOUTHERN TURKMENISTAN MAY BE

DEDICATED TO THE PROPOSED TRANS-CASPIAN GAS PIPELINE.

RESEARCH CONDUCTED BY TURKMENGEOLOGISTS AND

SPECIALISTS FROM SHELL GLOBAL EXPLORATION WAS

SUBMITTED TO THE GOTX' COMPETENT BODY FOR HYDROCARBON

RESOURCES FOR REVIEW.  ACCORDING TO THE DAILY

NEUTRALNIY TURKMENISTAN NEWSPAPER, SHELL CONTINUES TO

FULFILL ITS UPSTREAM OBLIGATIONS UNDER THE

TRANSCASPIAN GAS PIPELINE PROJECT, SINCE SIGNING AN

ALLIANCE FOR EXPLORATION, DEVELOPMENT AND MARKETING

OF HYDROCARBON RESOURCES WITH THE TURKMENNEBIT AND

TURKMENGAS STATE CONCERNS IN JULY.  GARAJAOVLA WILL

BECOME THE FIRST CONTRACTUAL AREA UNDER THE

PRODUCTION-SHARING AGREEMENT BETWEEN SHELL AND THE

GOTX, FOLLOWING WHICH SHELL PLANS TO FINALIZE ITS

PARTICIPATION IN EXPLORATION OF OTHER PROMISING GAS

FIELDS IN TURKMENISTAN.  A SHELL REPRESENTATIVE SAID

THE FIELD MAY BE A SOURCE FOR THE LONG-TERM SUPPLY OF

GAS TO THE TRANS-CASPIAN PIPELINE.  EXPERTS ESTIMATE

THAT THE GARAJAOVLA GAS FIELD CONTAINS 230 BCM OF

NATURAL GAS ACCORDING TO A SEISMOLOGICAL AND

GEOLOGICAL SURVEY OF TWENTY WELLS DRILLED THERE BY

TURKMEN GEOLOGISTS.  MORE PRECISE INFORMATION WILL BE

AVAILABLE AFTER A PLANNED FIVE THOUSAND METER DEEP

WELL IS DRILLED.

 

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LIQUEFIED GAS FROM NAIP PLANT SOLD ABROAD

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5.  ACCORDING TO THE LOCAL PRESS THE NAIP GAS

PROCESSING PLANT IN NORTHERN TURKMENISTAN CAN PROCESS

3 MILLION CUBIC METERS OF NATURAL GAS A DAY.  THIS

TRANSLATES INTO TWENTY THOUSAND TONS OF LIQUEFIED GAS

ANNUALLY.  THE PLANT IS SUPPLIED WITH GAS FROM THE

NAIP, KERPICHLI, BOVRIDESHIK AND BALGUI FIELDS.

ACCORDING TO PRESS REPORTS, LIQUEFIED GAS FROM THE

NAIP PLANT IS INTENDED MAINLY FOR EXPORT BECAUSE THE

GOTX HAS ALREADY COMPLETED GASIFICATION OF NINETY

PERCENT OF THE COUNTRY.  THE PRODUCTION FROM THE NAIP

PLANT MEETS INTERNATIONAL STANDARDS AND ITS

RELATIVELY LOW PRICE MAKES IT VE

RY POPULAR IN

NEIGHBORING COUNTRIES SUCH AS UZBEKISTAN, IRAN AND

AFGHANISTAN.  PAKISTAN IS ALSO A POTENTIAL CONSUMER

FOR LIQUEFIED TURKMEN GAS.  THE GAIP-GAZACHAK

RAILROAD AND TANKER TRUCKS ARE USED TO TRANSPORT

TURKMEN LIQUEFIED GAS TO FOREIGN MARKETS.