5 June، 2023

News from Emirates

OGT Forum for stresses the importance of energy security UAE is an important economic partner and 50 trillion Turkmenistan’s gas reserves Al-Sayegh: We look forward to investment opportunities in the transport and logistics sectors Al-Jarwan: $750 million annual investment value for Dragon Oil

 

Dubai: Participants in the International Forum for Attracting Foreign Investment in the Turkmen Energy Sector, which kicked off today in Dubai, stressed the need to ensure energy security, continue investing in infrastructure and ensure the flow of gas, while His Excellency Serdar Berdimuhamedow, President of the Republic of Turkmenistan, stressed in a speech delivered on his behalf, Ashyrguly Begliyev, Deputy Prime Minister of Turkmenistan, stressed the importance of Dubai hosting this event in attracting investments to the oil and gas industry in Turkmenistan.

The speakers at the forum pointed out that the political and economic stability of Turkmenistan plays a prominent role in attracting the interest of foreign companies, as well as the laws that are in line with the principles of international law, which enhances the authority of Turkmenistan as a reliable partner for cooperation and investment in the oil and gas industry.

For his part, His Excellency Ahmed Al-Sayegh, Minister of State and member of the Board of Directors of the ADNOC Abu Dhabi Fund for Development, said in his opening speech that the investments of Emirati companies in Turkmenistan have exceeded one billion US dollars over the past two decades. His country is the largest player in the Asian oil and gas market, as the country’s hydrocarbon resources are estimated at more than 71 billion tons of oil equivalent, including more than 20 billion tons of oil and more than 50 trillion cubic meters of natural gas, as Turkmenistan today ranks fourth in the world. In terms of proven natural gas reserves, after Russia, Iran and Qatar.

His Excellency Ahmed Al-Sayegh added: “We look forward to investment opportunities in the transportation and logistics sectors, while Ali Rashid Al-Jarwan, CEO and Director of Exploration and Production at Dragon Oil Company, revealed that the annual investment value of the company amounts to $750 million, and Batir Amanov, Minister of State – Chairman of the Council of State Affairs confirmed “Turkmengas”, that Turkmenistan’s gas reserves amount to 50 trillion dollars. At the same time, Turkmenistan’s ambassador to the UAE, Sardarmarmit Grajev, said that the UAE is an important economic partner for our country.

His Excellency Serdar Berdimuhamedow, President of the Republic of Turkmenistan, stressed in a speech delivered on his behalf by Deputy Chairman of the Council of Ministers H.E. Ashyrguly Begliyev، that this conference is of great importance in increasing the rate of industrial development of Turkmenistan, developing the national economy through diversification, attracting investments for the joint exploitation of oil and gas fields, and implementing priority programs to increase the production of products that are in high demand. in the global market.

His Excellency expressed his country’s aspiration to increase natural gas export potential, diversify its channels, and develop priority areas to attract investments in gas processing, gas chemistry system, oil and gas industry, and building new industries.

H.E. Serdar Berdimuhamedow reiterated that Turkmenistan sought to direct its natural resources, first of all, for the benefit of the Turkmen people and other peoples, and to ensure economic stability in the country and the region. Accordingly, many large projects are being implemented in this field, and one of these projects is the Turkmenistan-Afghanistan-Pakistan-India gas pipeline. Today, its construction is being implemented at a high pace, pointing out that these projects create great opportunities for foreign businessmen to cooperate in the construction of the gas pipeline.

His Excellency addressed the great interest of his country in the processing industries, as the Kianli Polymer Plant and the Gas-to-Gasoline Plant in Ahal are among the largest production facilities not only in the region, but also in the world. In this regard, the future of Turkmenistan is even greater.

H.E. Serdar Berdimuhamedow also touched on the development processes of the Galkynish field, which is the largest gas field in the country, as we attach great importance to the development of this gas field through foreign investment. In addition to the development of licensed marine complexes located in the Turkmen part of the Caspian Sea under a product-sharing agreement at the expense of foreign investments. In this regard, a positive investment environment has been created in Turkmenistan in terms of finance, economy and legislation. We also continue to continuously improve these processes in accordance with international requirements.

For his part, His Excellency Ahmed Al Sayegh, Minister of State and member of the Board of Directors of the ADNOC Abu Dhabi Fund for Development, said that the relationship between our two countries is long and close, and we look forward to strengthening it in a way that achieves mutual benefit for our peoples.

In the opening speech, Al-Sayegh added, “The recent uncertainties in the energy markets prompt us to work side by side in light of the great challenges facing the global gas markets, as these conditions highlight the crucial role of Turkmenistan in maintaining global energy security as a stable and reliable supplier of hydrocarbons.”

Al-Sayegh touched on the Emirati presence in the energy sector in Turkmenistan, through the significant investments of Emirati companies that exceeded one billion US dollars over the past two decades.

His Excellency stressed that the dynamic bilateral partnership between the two countries enhances the global energy market by ensuring energy security, expressing the commitment of the United Arab Emirates to work closely with Turkmenistan in various other strategic sectors such as ports, transportation and logistics services and to expand our cooperation to include various major global issues such as climate change. the climate.

Al-Sayegh reiterated the UAE’s strong support for the continued development and prosperity of Turkmenistan and seizing the new investment opportunities offered by the Turkmen energy sector.

Batyr Amanov, Minister of State – Chairman of the Council of State Affairs “Turkmengas”, Batyr said that Turkmenistan is the largest player in the Asian oil and gas market, as the country’s hydrocarbon resources are estimated at more than 71 billion tons of oil equivalent, of which more than 20 billion tons are oil and more than today, Turkmenistan ranks fourth in the world in terms of proven natural gas reserves, after Russia, Iran and Qatar.

The chairman of “Turkmengas” emphasized the fact that Turkmenistan has a powerful resource base, which opens up great prospects for cooperation in the economy, including the fuel and energy sector.  The Galkynysh field, which is currently at the stage of pilot production, has unique gas reserves, which, together with the nearby Yashlar and Garakel deposits, are estimated at 27.4 trillion cubic meters.

Due to the large area and gas reserves, a strategy has been adopted for the phased development of this field, and each stage, in turn, is being developed in the context of specific projects with a focus on long-term cooperation.

As B. Amanov noted, the main gas pipeline Turkmenistan-China, put into operation at the end of 2009, which includes three parallel lines (A, B and C), running along the route Turkmenistan-Uzbekistan-Kazakhstan-China, is the flagship of mutually beneficial transnational cooperation.

Emphasizing that gas consumption in China is growing, the Chairman of the State Concern “Turkmengas” said that according to the agreements reached earlier, the supply of Turkmen natural gas to China should increase to 65 billion cubic meters per year after the fourth line of the gas pipeline is commissioned.  Its route to China will be laid from the border of Turkmenistan through the territory of Uzbekistan, Tajikistan and Kyrgyzstan.

The speaker recalled that natural gas produced as part of the first stage of development of the Galkynysh field is used in Turkmenistan, and is also supplied to consumers in the Middle Kingdom.  As part of the first stage of development of this field, Petrofac, CNPC and Hyundai Engineering have equipped underground and aboveground facilities for the preparation of commercial gas.

In order to ensure the planned volumes of supply to the PRC of an additional 25 billion cubic meters of gas per year, it is planned to put into operation the second stage of the development of the Galkynysh field,” B. Amanov continued.  Currently, negotiations are underway and the details of the contract on the start of well drilling and second stage facilities are being agreed upon.

In his speech, the head of “Turkmengas” drew the attention of international investors to the third stage of the development of Galkynysh, which will be the source for supplying 33 billion cubic meters of commercial gas per year under the Turkmenistan-Afghanistan-Pakistan-India international gas pipeline project.

  1. Amanov also noted that within the framework of the first session, the forum participants will be presented in more detail the results of the joint work of consultants from the GaffneyCline company and specialists from the Turkmengas State Concern on the design of seven stages of the development of the Galkynysh field, as part of the preparation of an updated geological and hydrodynamic model of the field.

Then B. Amanov presented a video to the attention of the forum participants, which describes in detail the activities of the State Concern “Turkmengas”.

At the end of his speech, the Chairman of the State Concern “Turkmengas” expressed confidence that the International Investment Forum would become an excellent platform for the development and further strengthening of partnerships between the national oil and gas companies of Turkmenistan and international investors.

For his part, Ali Rashid Al Jarwan, CEO and Director of Exploration and Production at Dragon Oil Company, said that the value of the forum is of great importance to international and Emirati energy companies, given the great energy capabilities of Turkmenistan in light of the great interest of the Turkmen government in the oil and gas sector.

Al-Jarwan estimated the value of Dragon Oil’s investments in Turkmenistan at about 8 billion dollars from 2000 to now, with expectations of investments of about 8 billion more until 2035.

And Al-Jarwan continued, the most important thing for us is to ensure production of oil and gas, while working to add some undeveloped fields in the same concession field for companies there.

At the same time, Serdarmammet Garajaev , Ambassador Extraordinary and Plenipotentiary of Turkmenistan to the UAE, said that Turkmenistan is a treasure trove of carbon wealth, and recently, Turkmenistan has become more established as a major gas hub in the region, as gas branches move to China, Russia, Azerbaijan, Kazakhstan, Uzbekistan and Iran, and our country is working on Expanding the export geography of gas routes.

 Grajev added: “The Energy Silk Road is being formed. Central Asia, being at the heart of the Great Silk Road, plays an increasingly important role in shaping the global energy structure. And by virtue of having some of the largest oil and gas reserves in the world, this naturally determines its special role in ensuring Global energy security and the growing interest of the international community in our region determines its high investment attractiveness, as well as the growing importance of the Caspian Sea as an energy and transport corridor.

His Excellency discussed the relations between his country and the United Arab Emirates, considering the UAE an old and great commercial and economic partner of Turkmenistan, as bilateral contacts have been growing effectively in various fields.

He pointed to the increasing interest of UAE companies in strengthening their positions in the promising Turkmen market, due to the far-sighted investment policy implemented by President Sardar Berdimuhamedov, and the comprehensive reform programs and projects launched in the country aimed at industrialization and the formation of a modern and diversified industrial infrastructure that depends on the introduction of technologies. and advanced developments.

Grajev explained that Turkmenistan and the UAE are two intensively developing countries with rich natural resources and a favorable geographical location, which greatly helps to establish a productive partnership in the trade and economic sector.

He added that the fuel and energy sector is one of the priority areas for bilateral cooperation, and that Turkmenistan, which has impressive potential in this field, is one of the natural gas exporting countries, and the gaseous chemicals industry is also developing, while providing a wide range of products for international markets.

His Excellency referred to the UAE’s participation in the implementation of a number of projects in Turkmenistan during the past years, especially with the Abu Dhabi Fund for Development, pointing out that his country attaches great importance to developing fruitful and beneficial cooperation for both parties, as it gave the visit of Turkmenistan President Serdar Berdimuhamedov to the UAE in the period from 21 To November 22, 2022, an additional impetus for the development of bilateral relations.

For his part, Mohammed Al-Eryani from ADNOC said that the forum is an excellent opportunity for me to talk about the importance of the future of energy in the world in light of the challenges that everyone faces.

Al-Eryani stressed the importance of providing energy to the world in a reliable, affordable and safe manner, with the need to move towards renewable and clean energies such as hydrogen, stressing the great role of Turkmenistan as one of the most important gas producers in the world.