ASHGABAT, Turkmenistan, October 22. Long-term
production-sharing agreements (PSAs), predictable commercial terms,
and a stable partnership with the state-owned Turkmennebit concern
are key factors in attracting investment to Turkmenistan’s oil and
gas sector, the Vice President of Dragon Oil in Turkmenistan Michel
Khammo said, Trend's
special correspondent reports.
Khammo made the remark on Thursday during a session of the “Oil
and Gas of Turkmenistan” (OGT 2026) International Conference and
Exhibition in Ashgabat.
According to him, Dragon Oil has been operating in Turkmenistan
for 26 years, and the extension of the company’s production-sharing
agreement through 2035 demonstrates confidence in the long-term
prospects for cooperation. Khammo also noted the presence of other
international energy companies in the country, including Eni,
Petronas, and INA.
“It is extremely important for investors to have predictable
commercial terms, clear provisions in production-sharing
agreements, and mutual understanding between international oil and
gas companies and the government of Turkmenistan, represented by
the state-owned Turkmennebit,” he emphasized.
According to Michel Khammo, effective cooperation between
investors and government partners helps speed up decision-making,
expand operations, and increase investment volumes.
He cited infrastructure readiness as another key condition for
attracting capital. Although Turkmenistan lacks access to the open
ocean, its location between East and West, as well as existing
export routes, create opportunities for supplying hydrocarbons to
various markets.
Furthermore, Khammo highlighted Dragon Oil’s collaboration with
Turkmennebit, describing it as a partnership that goes beyond the
typical investor-operator relationship. According to him, for 26
years the parties have jointly overcome operational challenges,
exchanged expertise, and implemented new technologies. He also
noted the support provided by the Turkmen side in recruiting local
specialists and international service companies, as well as in
resolving logistical issues amid a complex geopolitical
situation.
“Even given the global geopolitical situation this year and in
previous years, with the support of Turkmennebit, we have managed
to resolve many issues related to logistics and day-to-day
operations,” Michel Khammo said.
In his view, predictable operating conditions, well-developed
infrastructure, and strong partnerships are of fundamental
importance to investors considering projects in Turkmenistan.
Meanwhile, the second day of the 31st International Conference
and Exhibition “Oil and Gas of Turkmenistan” (OGT 2026) has begun
in Ashgabat. As part of the event, a session is being held on the
topic “Investment and development opportunities in the Turkmen
sector of the Caspian Sea.” Discussions are focusing on investment
opportunities for developing the Turkmen sector, prospects for
offshore exploration and production of hydrocarbons, and the
development of international partnerships.
The agenda also includes existing and new production-sharing
agreements (PSAs), as well as modern seismic survey programs
designed to help assess resource potential and prepare promising
blocks for development.
