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.