Turkmenistan plans to offer two offshore oil blocks in Caspian Sea for exploration in 2023

Turkmenistan plans to offer two offshore blocks for exploration of crude oil in 2023 near an area of the Caspian Sea that is currently producing 1 million b/d, officials told an investor forum in Dubai on April 27.

Blocks 21 and 23 will be offered for exploration, according to Guvanch Agajanov, chairman of the state-run Turkmennebit, which is responsible for management of all production, transportation and processing of oil and gas condensate in the country. He said one of his top priorities is welcoming foreign investment to the country and increasing production, noting that Turkmenistan has 18.2 billion mt in oil equivalent terms of hydrocarbon resources in Turkmenistan's part of the Caspian Sea. The country uses production sharing agreements to participate in its energy sector.

The area of the two blocks is in shallow waters south of the Aspheron sill section of the Caspian Sea, Mark Robinson, regional director for Europe, Africa and Middle East at consulting company GaffneyCline, told the forum. The offshore Caspian area currently involves 12 fields under Russia, 10 under Kazakhstan, 25 to 30 under Azerbaijan, one under Iran and 10 under Turkmenistan, he said. Turkmenistan's current offshore focus is on the Aspheron sill in a basin currently producing 1 million b/d of oil, he said. "We hope to provide further guidance on procedures for licensing of these blocks, and with that access to data, qualification requirements and a time period" to participate in the process expected this year, he said.

Turkmenistan's current oil production is about 8 million mt/year, Agajanov told S&P Global Commodity Insights at the forum. While Turkmenistan has been an observer at OPEC and OPEC+ meetings, seeking permanent membership in the oil producing alliance is currently not being considered, he said.