Turkmenistan to produce 80 billion cubic meters of gas in 2007

Business Materials 28 March 2007 17:34 (UTC +04:00)

( RIA Novosti ) - Turkmenistan intends to produce 80 billion cubic meters of natural gas and 10.4 million metric tons (some 78 million barrels) of oil in 2007, Turkmen media reported Wednesday.

Turkmenistan holds the world's fifth-largest natural gas reserves and substantial oil resources. It is the second gas-rich republic in the former Soviet Union after Russia, which controls the transit route for Turkmen gas exports to former Soviet republics and Europe.

In 2005, Turkmenistan claimed its current recoverable gas resources to be as much as 20.42 trillion cubic meters.

"Gas production will grow 1.2-fold and oil output by 15% this year," Turkmen media said, referring to the presidential development program for the oil and gas sectors.

Under the program, the plans take into account "domestic demands and contracts signed with foreign partners as part of long-term intergovernmental agreements."

In 2007, the Central Asian country will export 58 billion cubic meters of natural gas, including 50 billion to Russian energy giant Gazprom and 8 billion to Iran.

In September, Turkmenistan raised the gas price for Russia from $65 per 1,000 cubic meters to $100 for the period spanning 2007-09. The two countries also agreed that by July 1, 2009 they would negotiate an adjustment, depending on European gas prices, for long-term deliveries, Gazprom said.