OREANDA-NEWS. April 28, 2011. Turkmenistan is planning to attract USD 4.1 billion investment to speed up the development of the Southern Yoloten-Osman deposit located in the eastern part of the country. The two documents were signed for this purpose, including the loan agreement between the Turkmengaz State Concern and China Development Bank and the agreement on multilateral cooperation between the Turkmengaz State Concern, the PetroChina Company and China Development Bank.

It was noted during the signing ceremony, which was held in the building of the oil and gas ministries and departments, President of Turkmenistan Gurbanguly Berdimuhamedov took considerable efforts to promote production of hydrocarbon resources that are in a steadily increasing demand on world markets. As consistent with the state strategy for diversifying energy transit pursued by Turkmenistan, the Turkmen leader set the task to speed up development of the Southern Yoloten-Osman field to gas industry workers.

It should be noted that this is the second preferential loan issued by the People’s Republic of China to be used to develop the Southern Yoloten field. In 2009 the Turkmengaz State Concern and China Development Bank signed the loan agreement amounted to USD  4 billion for this purpose. The second document is the agreement on multilateral cooperation between the Turkmengaz State Concern, PetroChina Company and China Development Bank that envisage that the loan will be repaid through natural gas supplies from Turkmenistan to China.

On the initiative of the Turkmen leader commercial development of this giant field is carried out by the Turkmengaz State Concern. In December 2009 it signed the four service contracts with such companies as Gulf Oil & Gas Fze, Petrofac International LLC (UAE), CNPC Chuanging Drilling Engineering Company (PRC) and consortium of companies LG International Corp and Hyundai Engineering (South Korea) totoally amounted to USD 9.7 billion to attract advanced technologies and equipment as well as to speed up the work.

Under the contracts signed this time that provide for complex development of the field and construction of modern processing enterprises the large-scale work are speeded up. Thus, the Southern Yoloten-Osman deposit will be a significant contribution to increasing ‘blue fuel’ production in Turkmenistan.

Turkmenistan develops the new options for natural gas exports towards Europe and eastwards along with traditional routes as consistent with the energy strategy for diversifying energy transit to world markets. To this effect the preparations for the Turkmenistan-Afghanistan-Pakistan-India gas pipeline project are under way, and the possibilities to lay a transcontinental pipeline towards Europe are explored. Currently, the East-West gas pipeline is under construction in the country. The new gas main line will connect largest natural gas deposits throughout the country in the one gas transportation network that will enable to export Turkmen ‘blue fuel’ to world markets in any direction.

During the ceremony of signing these documents Jiang Chaoliang, President of China Development Bank emphasized that this event was a new important step to strengthen Turkmen-Chinese cooperation built on a long-term, mutually beneficial basis.

The ceremony participants expressed belief that constructive partnership that had resulted in implementing and developing joint projects would be furthered successfully.