ASHGABAT, Turkmenistan, October 22. Turkmenistan is offering foreign investors more than 30 licensed blocks in its Caspian Sea sector, providing for various types of contracts, tax incentives, and simplified customs procedures for companies participating in oil and gas projects, the Deputy Chairman of the state-owned Turkmennebit State Concern, Batyr Jumayev said, Trend's special correspondent reports.
Jumayev made the statement at a panel discussion on Investment and development opportunities in the Turkmen sector of the Caspian sea as part of the 31st International Conference and Exhibition “Oil and Gas of Turkmenistan” (OGT 2026) in Ashgabat.
According to Jumayev, cooperation with foreign companies in the offshore sector is carried out in accordance with Turkmenistan’s Law “On Hydrocarbon Resources,” which establishes legal guarantees for investors and the conditions for conducting oil operations.
“The Turkmen sector of the Caspian Sea is divided into more than 30 license blocks. If interested in one or more blocks, any potential investor may submit an official application to the state-owned concern Turkmennebit,” he noted.
After reviewing the application and verifying that the investor meets the qualification requirements, the parties may proceed to direct, non-exclusive negotiations. Based on the results of these negotiations, they may enter into production-sharing agreements (PSAs), concession agreements based on royalty and tax terms, joint venture agreements, or risk-sharing service contracts. The law also permits a combination of these forms.
Moreover, Jumayev emphasized that the tax regime entails the payment of income tax and prescribed fees for the right to use natural resources. Investors are exempt from a number of other mandatory payments and fees, as well as from customs duties on the import and export of goods, materials, and equipment necessary for oil operations. These provisions also apply to subcontractors.
In addition, investors have the right to dispose of their share of extracted hydrocarbons, including refining their share of oil at Turkmen refineries without additional taxes, licenses, or permits.
Among Turkmenistan’s current international partners in the development of offshore resources, Jumayev named Dragon Oil, Petronas, and ADNOC, which operate under production-sharing agreements.
He specifically highlighted the production-sharing agreement for the “Block 19” and “Block 20” contract areas, signed in June 2026 between Turkmennebit, the Malaysian company Petronas Carigali (Turkmenistan) Sdn. Bhd., and the state-owned enterprise Khazarnebit. According to him, this agreement marks a new phase in offshore geological exploration and production.
Another area of focus is 2D seismic surveys in licensed blocks 11, 12, 13, and 14. A corresponding agreement has been signed between Turkmennebit and Petronas Carigali. This work is intended to expand geological information on promising areas and lay the groundwork for assessing their hydrocarbon potential.
“Strategic partnerships under production-sharing agreements are a key mechanism for attracting large-scale foreign capital and technology to develop Turkmenistan’s significant hydrocarbon resources in the Caspian Sea sector,” Jumayev stated.
He added that Turkmennebit is open to dialogue with international companies based on the principles of equality and mutual benefit.
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.