Speech by Batyr Jumayev, Deputy Chairman of the State Concern “Turkmennebit”

It gives me great pleasure to welcome the guests and participants of the 31st International Conference “Oil and Gas of Turkmenistan — 2026” to our white-marble capital, Ashgabat.

Thanks to the tireless efforts of the National Leader of the Turkmen People, Hero-Arkadag, international cooperation in the oil and gas sector has developed significantly. The highly esteemed President of Turkmenistan, Serdar Berdimuhamedov, continues to successfully advance these crucial strategic initiatives at the highest level.

The State Concern “Turkmennebit” is one of the key pillars of the national economy. Our primary role is to implement the Concept for the Development of the Oil and Gas Industry of Turkmenistan.

The Concern carries out a full cycle of operations, ranging from the exploration and development of oil fields and the production of crude oil and gas condensate to their transportation and advanced processing.

The successful implementation of these objectives directly contributes to the economic stability and growing prosperity of our country.

The primary objective of today’s conference is to demonstrate the vast resource potential of Turkmenistan, strengthen technological partnerships, and actively attract foreign direct investment into the national oil and gas sector.

One of the priority areas for investment in Turkmenistan’s oil industry is the development of hydrocarbon resources in the national sector of the Caspian Sea.

Cooperation with foreign companies in this area is carried out in accordance with the Law of Turkmenistan “On Hydrocarbon Resources,” which provides fundamental guarantees and rights to foreign investors in conducting Oil Operations and under concluded Production Sharing Agreements.

The Turkmen sector of the Caspian Sea is divided into more than 30 licensed blocks.

Any potential investor interested in one or several blocks may submit an official application to the State Concern “Turkmennebit.”

Following review of the application by the Concern’s specialists, and provided that the investor meets all established criteria, the investor is invited to direct, non-exclusive negotiations concerning the selected block.

Upon successful completion of the negotiations, a Production Sharing Agreement or one of the other types of agreements listed below may be concluded.

The Law provides for the following types of agreements:

• Production Sharing Agreement;

• Royalty and Tax Concession Agreement;

• Joint Activity Agreement;

• Risk Service Agreement.

Depending on the nature of the specific petroleum operations and other relevant circumstances, the legislation of Turkmenistan also allows combinations of the above contractual arrangements, as well as other forms of agreements commonly used in international oil and gas industry practice.

It should be emphasized that this Law provides fundamental guarantees and rights to foreign investors carrying out Oil Operations. I would like to outline some of them.

First and foremost, it establishes a simplified and preferential fiscal system that provides for only one type of tax — profit tax — as well as two to three payments related to the right to use natural resources.

At the same time, the Law exempts investors from all other mandatory payments, fees, duties, and similar charges.

Contracts relating to the import and export of goods, materials, and equipment intended for Oil Operations are exempt from registration at the State Commodity and Raw Materials Exchange of Turkmenistan.

The Contractor is exempt from customs duties and other charges related to the import and export of goods, materials, and equipment required for carrying out Oil Operations, including the export of the Contractor’s share of produced hydrocarbon resources.

The provisions of this customs regime also apply to subcontractors.

The Law also provides investors with the right to freely dispose of their share of hydrocarbons, including the right to process their share of crude oil at oil refineries without additional taxation or the need to obtain additional licenses and permits.

Dear Ladies and Gentlemen!

Strategic partnership under Production Sharing Agreements represents a key mechanism for attracting substantial foreign investment and advanced technologies for the development of the significant hydrocarbon resources of the Turkmen sector of the Caspian Sea.

Today, within the framework of existing Production Sharing Agreements, we are successfully cooperating on the offshore shelf with Dragon Oil, PETRONAS, and ADNOC.

In June 2026, a Production Sharing Agreement covering the contractual areas of Blocks 19 and 20 was concluded between the State Concern “Turkmennebit,” Petronas Çarigali (Türkmenistan) Sdn. Bhd., and the State Enterprise “Hazarnebit.”

This agreement opened a fundamentally new chapter in strengthening the potential of offshore exploration and hydrocarbon production.

Geological exploration activities have also been launched under the Agreement on conducting 2D seismic studies on Blocks 11, 12, 13, and 14, concluded between Petronas Çarigali (Türkmenistan) Sdn. Bhd. and the State Concern “Turkmennebit.”

This cooperation establishes a strong foundation for significant future discoveries of hydrocarbon resources.

All these developments once again demonstrate Turkmenistan’s commitment to openness and investment attractiveness through its “Open Doors” policy, supported by a robust and modern legislative framework.

In conclusion, I would like to emphasize that the State Concern “Turkmennebit” remains open to dialogue aimed at establishing and further developing cooperation with international companies on the principles of equality and mutual benefit.

Thank you for your attention!

Batyr Jumayev
Deputy Chairman of the State Concern “Turkmennebit”