ASHGABAT, Turkmenistan, October 22. Turkmenistan is using project financing mechanisms backed by export credit agencies from Japan, Germany and South Korea to implement major projects in the oil and gas sector, Chairman of the Board of the State Bank for Foreign Economic Affairs of Turkmenistan Rahymberdi Jepbarov said, Trend's special correspondent reports.
He made the remarks during the session “Gas Monetization, Petrochemicals and Industrial Value Creation” at the 31st International Conference and Exhibition “Oil and Gas of Turkmenistan” (OGT 2026) in Ashgabat.
According to him, the choice of funding sources is determined by the feasibility study for each project. The government assesses whether a particular project should be financed through external or domestic resources. In both cases, international financial instruments and practices are applied.
“If we look at the projects we have already implemented in the oil and gas sector, they were structured on the principles of project financing with the participation and support of export credit agencies,” Jepbarov said.
He named Japan’s NEXI, Germany’s Euler Hermes and South Korea’s K-SURE among these agencies. According to the bank’s chairman, the agencies provided insurance coverage that enabled financial institutions to allocate funds for project implementation.
Jepbarov also cited syndicated lending as another financing mechanism, involving several commercial banks joining forces to finance projects.
He noted Turkmenistan’s cooperation with international financial institutions, including the Asian Development Bank, the Islamic Development Bank and the European Bank for Reconstruction and Development.
The bank’s chairman emphasized that the banking sector supports oil and gas projects both by attracting foreign financing and by providing domestic resources. Commercial banks, in turn, facilitate day-to-day financial transactions for project participants.
According to Jepbarov, the experience gained in structuring major projects with partners from Japan, Europe and South Korea provides a foundation for further cooperation in the energy sector.
He also linked the development of financing mechanisms to Turkmenistan’s economic diversification goals, noting that the country places particular emphasis on deeper hydrocarbon processing and the production of higher value-added goods.
“As part of our economic diversification policy, we are actively developing the deep processing of hydrocarbons into finished products,” Jepbarov said.
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.