OREANDA-NEWS. July 20, 2009. RWE Dea AG – one of the leading energy companies in Europe – a new partner of Turkmenistan in developing hydrocarbon fields in the Turkmen sector of the Caspian Sea. The German company is to develop in the contract territory of offshore block 23. The contract with the new investor along with other foreign companies, which are developing offshore fields in Turkmenistan, will enable to use fully the huge potential of hydrocarbon resources of the Turkmen sector of the Caspian Sea in the near future.

Several days ago the State Agency for Hydrocarbon Resources Management and Use under President of Turkmenistan and the RWE Dea AG Company signed the Production Sharing Agreement between in Turkmenbashi town. President of Turkmenistan Gurbanguly Berdimuhamedov took part in the ceremony. Under the Agreement the German company received the license to carry out the prospecting works in the contract territory of offshore block 23 for 6 years. If the German specialists discover hydrocarbon resources in the block the company will receive the license for commercial production of hydrocarbon recourses for 25 years.

As a result of the preliminary seismic tests the geologists predict that this large block is rich in hydrocarbon resources, in particular natural gas. The volume of reserves will be specified after the company carries out the programme of prospecting works including the 3D seismic tests and exploration drilling.

The Production Sharing Agreement promotes implementing the large-scale plans of mutually advantageous cooperation provided by the Memorandum on Long-Term Cooperation between the Government of Turkmenistan and the RWE AG Company this April.

Today several foreign companies including Wintershall (Germany), Maersk Oil (Denmark), ONGC (India), Anglo-Arabian Dragon Oil, Buried Hill (Canada), Petronas (Malaysia) work in the Turkmen sector under the production sharing agreements. During the meeting of President Turkmenistan Gurbanguly Berdimuhamedov Mohammad Hassan Marican, CEO of Malaysian Petronas the head of the world’s leading oil and gas company said that the company stood ready to start commercial production of natural gas in 2010 and increase ‘blue fuel’ production up to 10 billion cubic metres.

Recently French Total and GDF, British BP and Austrian OMV expressed the willingness to collaborate in developing offshore deposits and presented the relevant projects to the Turkmen leader. Through collaboration with these leading companies on implementation of the profound potential of the Turkmen sector of the Caspian Sea new incentives to further increase hydrocarbon production will be created.

The fact that new investors including leading European countries develop the offshore fields of the Turkmen sector of the Caspian Sea is a vivid evidence of EU’s interest in strengthening collaboration with Turkmenistan in fuel and energy sector. European countries’ increasing demands in energy resources provide their interest in Turkmenistan as large supplier of energy and a reputable partner playing a more important role on a world arena.

New investors including the European companies willing to operate in the Turkmen sector is another illustration of EU’s intense interest in enhancing fuel and energy cooperation with Turkmenistan. Europe’s interest in Turkmenistan as one of the world’s energy exporters and an important player on global energy market is based on its increasing needs for energy.

The Turkmen leader’s energy policy that provides for new approaches to cooperation on diversification of export routes to guarantee transit of Turkmen energy to international markets earns Turkmenistan the status of a dependable and long-term partner in the international energy dialogue. Through successful implementation of this policy the potential of energy exports in different directions on the Eurasian continent will be enhanced.