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Turkmengaz and China’s CNPC to revise financing terms for Galkynysh gas field

Oil&Gas Materials 29 January 2022 10:21 (UTC +04:00)
Turkmengaz and China’s CNPC to revise financing terms for Galkynysh gas field

BAKU, Azerbaijan, January 29

By Amina Nazarli - Trend:

Turkmenistan’s state concern Turkmengaz and China’s CNPC Chuanqing Drilling Engineering company will revise the terms of financing of previously concluded agreements, Trend reports citing Orient news agency.

The new agreements worth $106.2 million will allow CNPC to provide services for the completion and commissioning of three particularly difficult wells in the Galkynysh, the largest gas field in Turkmenistan.

The project was initially agreed upon with Gulf Oil & Gas FZE, a UAE-based company, which was started but not fully completed.

The construction of the wells by CNPC began in August 2021 and is expected to be completed in 2022. The contract's settlements are expected to be carried out at the expense of natural gas supplies to China.

Turkmenistan has the greatest number of pipeline gas supplies to China. In 2021, Turkmenistan exported approximately 34 billion cubic meters of natural gas to China. Since the Turkmen-China gas pipeline was inaugurated in 2009, over 320 billion cubic meters of Turkmen gas have been transported to China.

Moreover, Turkmengaz and CNPC signed a production sharing agreement on July 17, 2007, for the Bagtyyarlyk field, which is currently industrializing 29 gas fields and extracting natural gas from 137 wells.

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