The President of Turkmenistan holds session of development of oil and gas complex

President Gurbanguly Berdimuhamedov held working session with the management of oil and gas complex where improvement of activity of this sphere and enhancement of its efficiency have been discussed.

Highlighting the agenda, the Head of the State gave floor to Deputy Chairman of the Cabinet of Minister M. Meredov who reported on the situation in oil and gas industry and plans of development of fuel and energy complex in the nearest future.

It was mentioned that relative work is carried on for introduction of the latest scientific achievements and international practice to fuel and energy complex, increment of volumes of oil and gas production and processing.

The Vice premier reported on the measures taken for stable provision of gas to local consumers and supplies to foreign markets according to the contracts with Turkmengaz State Concern.

Projects of development of petrochemical sphere and formation of ramified gas export infrastructure are steadily implemented. At the same time, relative work for fulfilment of objectives for increment of oil production, finding of new deposits, which are rich with oil and gas, and their development.

The Vice premier has also reported on the measures taken in the sphere of further development of oil refining industry, implementation of high technologies, production of petroleum products, which are on high demand in foreign markets.

State Minister Chairman of Turkmengaz State Concern M. Archayev reported on the work in the sphere of production and export of natural gas.

Detailed information on the measures taken for enhancement of well production by introduction of new technologies including at Dowletabat Field, which is one of the biggest deposits of the our country, as well as study and use of advanced practice and latest equipment from foreign companies has been presented.

Information about exploration and survey works including by the method of 3D seismic survey, which are carried out in the east of the country at Malay gas deposit and Tadjibay Field next to it as well as at Northern Chopanguyi, for study of deep layers and assessment of their gas content has been presented.

Contract with Japanese Mitsubishi Corporation for preliminary technical project design of the plant for production of 10 billion cubic meters of sale gas per year has been signed in September this year. This facility od planned to be built during next stage of development of Galkynysh Gas deposit, which is the second largest in the world.

Works under realization of the Programme of development of oil and gas industry of Turkmenistan until 2030 and integrated programmes for industrialization of the country are also carried out.

Acting Chairman of Turkmennebit State Concern J. Orazov made report on production and management activity of oil industry and on situation of the Concern in this context.

It was reported to the President about work for improvement of production capacity of operational wells in oil fields as well as for exploration of new perspective hydrocarbon deposits, their development and increment of volumes of produced raw material.

Work for improvement of efficiency of development of oil and gas deposits using digital technologies for management of oil production and well development is carried out.

In addition, information about survey and exploration works of the Concern in shallow and coastal zone of Caspian Sea as well as about attraction of investors to the development of new offshore blocks in Turkmen section of Caspian Sea has been presented.

In his turn, Chairman of the State Corporation Turkmengeologiya Sh. Abdrahmanov reported on work for implementation of the latest scientific achievements, field geophysical surveys and deep exploration drilling, which are aimed at finding of new oil and gas deposits, mineral reserves, drinking water and other natural resources.

At present time, the Corporation carries out survey and exploration works in the southeast and west perspective oil and gas fields as well as at the territories of known deposits.

Industrial gas production has been received from wells No. 1 and 2 of new Tajibay Field in January October 2019. In addition, industrial gas flow has been received and works for estimation of available reserves have been started in the well No. 1 at Northern Nazar Okarem Field in Western Turkmenistan.

In addition, information about geological surveys carried out for finding of mineral resources, which are raw materials for the facilities of metallurgic, construction and chemical industry and other spheres, has been given. For example, exploration and assessment works are carried out in Janahir, the deposit of lime and clay used for production of cement.

3D field seismic complex and programme software for processing and integration of data received from field studies are planned to be bought for improvement of efficiency of seismic studies. The complex allows implementing 4D monitoring technology in future for optimization and production of oil and gas at developed oil and gas deposits.

Working session was continued by the report of the General Director of Turkmenbashy Refinery Complex B. Amanov who informed President Gurbanguly Berdimuhamedov on work for realization of the Programme of development of oil and gas industry.

According to the programme, it is planned to start number of new projects of construction of modern technological facilities at the refinery with participation of foreign companies for rational use of hydrocarbon resources, improvement of oil refining, increment of production of petroleum products, which are on high demand in foreign markets, and expansion of their variety.

It includes complex of units for production of vehicle gasolines meeting EURO 5 standards and higher, high quality base technical oils and other petrochemical production. In addition, technical and economic feasibility of organization of production of benzene at Seydi Refinery for further use as a raw material for production of high value products as polystyrene and rubber, which are on high demand in the world market, is studied.

Representative of Director Board of TAPI Pipeline Company Limited Joint Stock Company from Turkmengaz State Concern M. Amanov reported to the Head of the State on progress of the project of construction of Turkmenistan Afghanistan Pakistan India pipeline on the territory of neighbouring countries.

As of today, project design and technical and commercial specification of the project of pipeline have been accomplished, developed documents have been agreed with relative authorities of member states. Works for environmental impact assessment of the project in Afghanistan and Pakistan have been accomplished and positive conclusions have been received.

Studies of soil, atmosphere and environment conditions have been accomplished on the territories of these countries. More than 2,000 local and foreign specialists have been involved in these works, which were carried out taking into account all requirements of international standards and financial institutes.

Summing up the results of international tenders for material and technical provision of the turn key construction of the pipeline and clarification of the contracts are at the final stage. Competent construction and oil and gas equipment companies from Germany, Turkey, Italy, Spain, Greece and other states participates in the tenders.

At the same time, talks with export and crediting agencies of Germany, Italy, Greece, Russia, Asian Development Bank, Islamic Development Bank as well as number of other financial institutes and big international banks , which show their interest in the project, are held.

Work on amendment of previous agreements is carried out together with relative structures of the member state of the project. The General Terms of the Contract have been signed between the Governments of Afghanistan and Pakistan and receiving sides and terms of provisions of this Contract related to transit and transportation of gas are clarified. This work is planned to be accomplished in the first quarter of the next year.

Summing up the report, President Gurbanguly Berdimuhamedov highlighted big international importance of the TAPI project in the context of formation of new architecture of global energy security and conditions for achievement of the UN Sustainable Development Goals.

As is known, Turkmenistan Afghanistan Pakistan power and fibre optic lines will be laid along new energy route, which will be another real step toward comprehensive integration of the member states of the project into the world economic system.

Cooperation in such strategic sphere as transport, which has a significant potential, is also very important. In the future, it will allow Afghanistan to join the transit and transport system in regional and global scale.

Our country builds social, in particular medical and educational facilities, in neighbouring state together with supply of electricity and liquefied gas on reduced cost, various free humanitarian supplies.

Expressing solidarity with fraternal Afghan nation in its desire for peace and harmony, Turkmenistan will continue rendering comprehensive support and necessary assistance, President Gurbanguly Berdimuhamedov highlighted.

After, Advisor of the President of Turkmenistan on Oil and Gas Affairs Ya. Kakayev made report on number of projects, which are carried out in fuel and energy complex of the country as well as on the results of activity of foreign partners, measures for activation of international cooperation in this direction.

In this regard, the information about the measures, which are to support steadfast implementation of energy strategy, especially about the objectives for increment of production and export volumes of natural gas, diversification of routes of supplies of energy resources to big world markets.

During the report, it was informed about work for scientific approach to solution of various subjects related to implementation of the TAPI project.

Summing up the reports, the President of Turkmenistan highlighted that further development of oil and gas industry, which is one of the basic spheres of the economy, enhancement of its profitability and as result turning of it into advanced high profitable industry, is one of priority directions of the government policy.

In this regard, all heads of oil and gas industry have to pay special attention to strict compliance of production objectives by profile facilities and organizations, to achieve steady improvement of their financial and economic indicators and profitability of work.

Many major project has been accomplished in the result of the policy of industrial development of national economy recently.

Speaking of this, the Head of the State has brought up rapid development of Galkynysh deposit, which has huge reserves of gas, completion of construction of the East West gas line, which provides unification of all gas routes in single system, opening of the plant for production of polyethylene and polypropylene in Kiyanly, polypropylene film facility at Turkmenbashy Refinery Complex, commissioning of facility for production of high octane gasoline, construction and putting into operation of gasoline production plant in Ovadandepe and number of other big projects as an example.

Construction of Turkmen part of Turkmenistan _Afghanistan Pakistan India gas line, which is very important for entire region, is carried out at high rates. In addition, number of new petrochemical complexes planned to be built in the nearest future, will make wide conditions for further increment of volumes of production received from deep processing of gas, development and integrated diversification of the industry.

At the same time, Head of the State Gurbanguly Berdimuhamedov pointed out that efficiency of oil and gas complex, especially in production of oil and gas and increment of industrial reserves, has been reduced, annual planned objectives are not fulfilled.

Work in the branches for transit to digital system is also delayed. There are deficiencies in fulfilment of production objectives for production and supply of petroleum products to international markets. Mistakes in fulfilment of the Plan of development of oil and gas industry in 2019 are admitted.

Thus, this year plan of Turkmennebit State Concern has been fulfilled by 88.7 percent. Low rates of drilling works and overhaul well maintenance are the main reason of delay.

Work for attraction of foreign investments to development of Turkmen section of Caspian Sea, bringing of old oil wells back to operation is not carried out properly. New advanced technologies for increment of raw material production in operational wells, oil return from productive layers are not used efficiently.

According to the Production Sharing Agreement on Nebitdag contractual territory between Turkmennebit State Concern and Italian ENI, the contractor has not received its share of produced oil to the volume of 18,000 tons on time. terms of contracts with Tatneft (Russia) and Yug Neftegaz (Singapore) are not executed to full volume.

Analysing the activity of Turkmengaz State Concern, President Gurbanguly Berdimuhamedov noted that the plan of production of natural gas was fulfilled by 94.6 percent for ten months, condensate production by 90.7 percent, liquefied gas production by 98.5 percent.

In addition, the plan of polyethylene production has been executed by 21.2 percent, polypropylene production by 23.8 percent, ECO 93 gasoline by 27 percent while for export of natural gas by 94.5 percent. In particular, production of liquefied gas at the plant in Bagaja does not match designed production capacity of the facility.

Similar situation is in Turkmengeologiya State Corporation where production plan for this year has been fulfilled by 85.9 percent. In the result, sufficient growth of oil reserves by geological survey works in the west of the country is not provided and new oil deposits are not discovered.

Turkmenbashy Refinery Complex does not increase production of gasoline, kerosene, diesel fuel, liquefied gas and heavy fuel oil. Comparing with indicators of 2018, the volume of gasoline production was 89.8 percent, kerosene 93.8 percent, diesel fuel 91.8 percent, liquefied gas 82.5 percent and heavy fuel oil 93.7 percent.

Deficiencies in sale of petroleum production in local market of the country have been admitted. Schedule of shipment of polypropylene film produced at the plant to local and foreign markets is not followed. Income of Turkmenbashy Refinery Complex in foreign currency has reduced by 2 percent.

Addressing the participants of the session, President Gurbanguly Berdimuhamedov outlined number of the main objectives for fulfilment of the government programmes and improvement of production indicators of oil and gas complex of Turkmenistan. The Head of the State highlighted that it is necessary to implement advanced technologies to production based on latest scientific achievements, to attract foreign investors on beneficial terms to the industry.

In particular, the State Concern Turkmennebit was requested to develop new proposals on cooperation in this direction in order to establish partnership with international companies recognized in the world in the sphere of exploration, development and processing of hydrocarbon reserves. It is necessary to attract foreign investments for development of new oil deposits and production of hard accessible remained reserves of oil from old deposits, the President said.

Turkmen leader addressed specific assignments to the management of Turkmengaz State Concern on expansion of sale markets of Turkmen gas and entry of new international markets, acceleration of construction of Turkmen part of Turkmenistan Afghanistan Pakistan India gas line and timely completion of construction of the pipeline in Afghanistan and Pakistan.

The Head of the State pointed out that it is necessary to achieve stable operation and designed production capacity of new facilities for processing of natural gas, to provide training of qualified personnel for work at high technology production facilities and petrochemical complexes.

The President of Turkmenistan ordered to intensify geological survey works for search and study of oil deposits and finding of new oil and gas deposits.

The Head of the State ordered to study in details modern methods of management and production of petroleum commodities and to implement them at Turkmenbashy Refinery Complex, to arrange production of new varieties of petrochemical products, to expand the routes of its delivery to foreign countries and international markets.

At the same time, it was highlighted that the utmost attention has to be paid to implementation of digital technologies to production, increment of quality of production and its high profitability.

Having mentioned the objectives of scientific and research institutes, the Head of the State highlighted that they have to develop the practice and latest achievements of the world science, to establish cooperation with profile scientific organizations in training of professional personnel.

Finishing the session, the President of Turkmenistan wished success to the participants in development of oil and gas industry.

Source: Turkmenistan State News Agency TDH