Turkmen head invites foreign oil, gas investment

Sept. 28, 2007
Turkmenistan's President Gurbanguli Berdymukhamedov, who this week met with US Sec. of State Condoleeza Rice, has encouraged international investment in his country's oil and gas industry.

Eric Watkins
Senior Correspondent

LOS ANGELES, Sept. 28 -- Turkmenistan's President Gurbanguly Berdimuhamedow, who this week met with US Sec. of State Condoleeza Rice, has encouraged international investment in his country's oil and gas industry.

"The [Turkmen] oil and gas sector needs foreign investment" to allow Turkmenistan to triple gas production by 2030, Berdimuhamedow said. He offered assurances to potential investors, saying, "As the president of Turkmenistan, I am the guarantor of the safety of your future investments."

In addition, he said, "We also have thoroughly worked-out legislative basis on all aspects of external economic activities. A number of such laws in this field have been improved with the direct participation of the European Union's international aid programs."

Berdimuhamedow and Turkmen Foreign Minister Rashid Meredov held brief talks with Rice on the sidelines of the UN General Assembly's ministerial meeting, discussing several topics, including investments in the country's oil and gas industry.

"They discussed how to create conditions for private investment and the development of a private economy in Turkmenistan," said a US State Department spokesman. "They talked about energy opportunities, including cooperation with US companies, but also with other countries in the region."

Turkmenistan is reported to have some of the world's largest gas reserves and is the second-largest gas producer, after Russia, in the former Soviet Union. According to Berdimuhamedow, Turkmenistan produces 70-80 billion cu m/year of gas, and some 10 million tonnes of oil.

Turkmenistan's gas export pipelines are controlled by Russia's state-controlled OAO Gazprom, something Berdymukhamedov wants to change, saying his country is ready to bypass Russia and begin selling some of its natural gas to Europe (OGJ Online, Sept. 21, 2007).

This week Berdimuhamedow said governments, banks, and companies of a number of countries have drawn up several new pipeline proposals, including Turkmenistan-China, Turkmenistan-Afghanistan-Pakistan, as well as Caspian and trans-Caspian.

The Turkmen president also addressed potential concerns over the viability of these lines, saying, "The main [concern of others] is whether or not we have enough resources to meet all declared obligations. My answer is 'Yes, we have enough,' and moreover, we guarantee the implementation of these projects."

Contact Eric Watkins at [email protected].