**TURKMENISTANENERGY SECTOR NOTES (DECEMBER 1999)**

** **

14 JAN 00

SOURCE US EMBASSYASHGABAT

 

1.    THIS CABLE SUMMARIZESDEVELOPMENTS IN THE ENERGY

SECTOR OFTURKMENISTAN FROM OPEN SOURCES, PRIMARILY

FROM THE LOCALPRESS, AND COVERS ITEMS NOT INCLUDED

IN OTHER EMBASSYREPORTING.

 

2.  CONTENT:

 

-- GOTX ANNOUNCESPRODUCTION FIGURES FOR 1999

 

-- GOTX DESIGNATESNEW GAS FIELD FOR TRANS-CASPIAN

PIPELINE

 

-- NAIP GASPROCESSING FACILITY UPDATE

 

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GOTX ANNOUNCESPRODUCTION FIGURES FOR 1999

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3.  ACCORDING TO OFFICIAL DATA RELEASEDJANUARY 6,

2000 IN 1999TURKMENNEFT PRODUCED 7 MILLION TONS OF

OIL, ONE MILLION OFWHICH WAS PRODUCED BY UKRAINIAN

AND WESTERNCOMPANIES WORKING UNDER PRODUCTION

SHARINGAGREEMENTS.  GAS PRODUCTION WAS22.8 BCM

WHICH IS TWO TIMESGREATER THAN IN 1998 DUE MOSTLY TO

THE TEMPORARYRESUMPTION OF GAS DELIVERIES TO UKRAINE

IN THE FIRST FIVEMONTHS OF THE YEAR.  IN 2000 THE

GOTX EXPECTS TOPRODUCE MORE THAN 33 BCM GAS OF WHICH

20 BCM WILL BEEXPORTED TO RUSSIA AND 5 BCM TO IRAN.

IN 1999 TURKMENISTANEXPORTED 10.7 BCM OF GAS TO

UKRAINE ANDIRAN.  TURKMENISTAN PLANS TOPRODUCE TEN

MILLION TONS OFCRUDE OIL IN 2000 YEAR - 4.2 MILLION

TONS MORE THAN ISNEEDED FOR DOMESTIC CONSUMPTION.

 

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GOTX DESIGNATESGARAJAOVLA GAS FIELD FOR TRANSCASPIAN

PIPELINE

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4.  THE GOTX ANNOUNCED DECEMBER 21 THAT THE

KARAJAOVLA GAS FIELDIN SOUTHERN TURKMENISTAN MAY BE

DEDICATED TO THEPROPOSED TRANS-CASPIAN GAS PIPELINE.

RESEARCH CONDUCTEDBY TURKMENGEOLOGISTS AND

SPECIALISTS FROMSHELL GLOBAL EXPLORATION WAS

SUBMITTED TO THEGOTX' COMPETENT BODY FOR HYDROCARBON

RESOURCES FORREVIEW.  ACCORDING TO THE DAILY

NEUTRALNIYTURKMENISTAN NEWSPAPER, SHELL CONTINUES TO

FULFILL ITS UPSTREAMOBLIGATIONS UNDER THE

TRANSCASPIAN GASPIPELINE PROJECT, SINCE SIGNING AN

ALLIANCE FOREXPLORATION, DEVELOPMENT AND MARKETING

OF HYDROCARBONRESOURCES WITH THE TURKMENNEBIT AND

TURKMENGAS STATECONCERNS IN JULY.  GARAJAOVLA WILL

BECOME THE FIRSTCONTRACTUAL AREA UNDER THE

PRODUCTION-SHARINGAGREEMENT BETWEEN SHELL AND THE

GOTX, FOLLOWINGWHICH SHELL PLANS TO FINALIZE ITS

PARTICIPATION INEXPLORATION OF OTHER PROMISING GAS

FIELDS INTURKMENISTAN.  A SHELLREPRESENTATIVE SAID

THE FIELD MAY BE ASOURCE FOR THE LONG-TERM SUPPLY OF

GAS TO THE TRANS-CASPIANPIPELINE.  EXPERTS ESTIMATE

THAT THE GARAJAOVLAGAS FIELD CONTAINS 230 BCM OF

NATURAL GASACCORDING TO A SEISMOLOGICAL AND

GEOLOGICAL SURVEY OFTWENTY WELLS DRILLED THERE BY

TURKMENGEOLOGISTS.  MORE PRECISEINFORMATION WILL BE

AVAILABLE AFTER APLANNED FIVE THOUSAND METER DEEP

WELL IS DRILLED.

 

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LIQUEFIED GAS FROMNAIP PLANT SOLD ABROAD

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5.  ACCORDING TO THE LOCAL PRESS THE NAIPGAS

PROCESSING PLANT INNORTHERN TURKMENISTAN CAN PROCESS

3 MILLION CUBICMETERS OF NATURAL GAS A DAY.  THIS

TRANSLATES INTOTWENTY THOUSAND TONS OF LIQUEFIED GAS

ANNUALLY.  THE PLANT IS SUPPLIED WITH GAS FROM THE

NAIP, KERPICHLI,BOVRIDESHIK AND BALGUI FIELDS.

ACCORDING TO PRESSREPORTS, LIQUEFIED GAS FROM THE

NAIP PLANT ISINTENDED MAINLY FOR EXPORT BECAUSE THE

GOTX HAS ALREADYCOMPLETED GASIFICATION OF NINETY

PERCENT OF THECOUNTRY.  THE PRODUCTION FROM THENAIP

PLANT MEETSINTERNATIONAL STANDARDS AND ITS

RELATIVELY LOW PRICEMAKES IT VE

RY POPULAR IN

NEIGHBORINGCOUNTRIES SUCH AS UZBEKISTAN, IRAN AND

AFGHANISTAN.  PAKISTAN IS ALSO A POTENTIAL CONSUMER

FOR LIQUEFIED TURKMENGAS.  THE GAIP-GAZACHAK

RAILROAD AND TANKERTRUCKS ARE USED TO TRANSPORT

TURKMEN LIQUEFIEDGAS TO FOREIGN MARKETS.