Turkmengaz, CNPC to ink additional agreement on gas production

The Turkmengaz State Concern and the China National Petroleum Corporation (CNPC) will conclude additional agreements on the development of gas fields in Turkmenistan, Report informs.

Turkmen President Gurbanguly Berdimuhamedov has signed the corresponding resolution at an online government meeting.

Deputy Prime Minister Shahym Abdrakhmanov, who oversees the fuel and energy complex, said at the meeting that the document provides for the conclusion of additional agreements to provide 16 wells of the Galkynysh gas field with chemical products, prepare drilling fluids, provide engineering services for their operation and supply these wells with appropriate equipment. The amount of this contract is 372.274 million Chinese yuan ($58,521 million).

According to the deputy prime minister, it is also planned to conclude additional agreements concerning the installation of specialized equipment and the provision of services at the Galkynysh, Garabil and Bagaja fields.

“As a result, the total amount of these agreements will be $106.222 million,” he added, the Neutral Turkmenistan newspaper reports.

After signing the document, the president emphasized that “investments should be returned in the form of raw materials received in the country.”

Earlier it was reported that Turkmengaz signed a contract with CNPC to complete the construction and commissioning of three gas wells at the Galkynysh field, the construction of which was started but not fully completed by Gulf Oil & Gas FZE from the UAE. At that time, it was noted that payment for CNPC services would be made at the expense of annual supplies of natural gas to China.