_BIOGRAPHY In 2002, he graduated from the Turkmen Polytechnic Institute with a degree in "Development and Operation of Oil and Gas Fields." He began his career as a drilling assistant at "Turkmengeology" (2003-2004) and served as a chief specialist in the Ministry of Oil and Gas Industry (2004-2007). He held various roles at the State Agency for Hydrocarbon Resources (2007-2016) and at "Turkmengas" (2016-2019).

SC TURKMENNEBIT, TURKMENISTAN'S STATE-OWNED OIL COMPANY, IS RESPONSIBLE FOR THE EXPLORATION, EXTRACTION, AND PRODUCTION OF OIL. AS A KEY PLAYER IN THE NATION'S ENERGY SECTOR, TURKMENNEBIT DRIVES ECONOMIC GROWTH AND DEVELOPMENT BY MANAGING SIGNIFICANT OIL RESERVES AND CONTRIBUTING TO BOTH DOMESTIC ENERGY SECURITY AND INTERNATIONAL ENERGY MARKETS.

CONSIDERING THAT THE CASPIAN SEA CURRENTLY REPRESENTS THE MOST ATTRACTIVE INVESTMENT OPPORTUNITY, COULD YOU HIGHLIGHT SPECIFIC EXPLORATION AND PRODUCTION OPPORTUNITIES IT OFFERS TO FOREIGN INVESTORS IN THE TURKMEN SECTOR?

Thanks to the political and economic stability and the “open door” policy of the President of Turkmenistan, all necessary conditions have been created to ensure a favorable investment climate, including for the implementation of oil and gas projects. Firstly, it is important to note the effective legal framework, specifically the adoption of the updated Law of Turkmenistan on "Hydrocarbon Resources" on August 20, 2008. This law provides the opportunity to conclude various types of oil contracts, such as Production Sharing Agreements, Concession Agreements (Tax and Royalties), Joint Activity Agreements, and Risk Service Contracts, depending on the nature of oil operations and other circumstances known in international oil and gas practice. According to some international experts, the diversity of contracts is very attractive for attracting foreign capital to the oil and gas sector of Turkmenistan.

The provisions of this law comply with international legal norms, including those of the Energy Charter Treaty. The law takes into account the provisions of the aforementioned treaty regarding the promotion and protection of investments, taxation, and other norms. As is well known, the Caspian region is the oldest oil and gas-producing area in the world and today is a concentration of significant energy resources, representing an extensive network of marine, land, and pipeline routes. It serves as a strategically valuable transport and communication corridor in Eurasia. Located at the crossroads of Asia and Europe, this region has all the prerequisites to become a major trade and economic hub and an important element in the supply chain of goods, primarily energy resources, from east to west and back, which will provide momentum for new integration processes that meet the interests of all Caspian states.

The development of hydrocarbon resources in the Turkmen sector of the Caspian Sea is one of the priority areas where direct foreign investments are welcomed. Currently, more than 30 marine blocks have been licensed under Turkmen legislation, with various geological and geophysical information available, including 3D seismic surveys. The concern is ready to consider investor interest in any blocks by providing information in the established manner.

THE HYDROCARBON RESOURCES LAW WAS INTRODUCED IN 2008. HOW FOREIGN INVESTMENTS IS BEING SUPPORTED IN THE OIL SECTOR OF TURKMENISTAN?

Firstly, it is important to note that this law provides fundamental guarantees and rights for foreign investors engaged in oil operations, as well as amendments to the Law of Turkmenistan on "Hydrocarbon Resources" that allow investors not only to extract hydrocarbons but also to process them. One of the main advantages of this law is the provision regarding taxation for investors. When conducting oil operations, the contractor only pays profit tax. The tax rate remains unchanged throughout the term of the Agreement, even if that rate changes in the Tax Code of Turkmenistan. This law clearly regulates both the financial and fiscal regime and the customs regime, under which imported goods, materials, and equipment intended for oil operations, as well as products exported by the contractor from Turkmenistan and owned by the contractor under the Agreement, including the volumes of extracted hydrocarbons, are exempt from taxes and fees.

During oil operations, the contractor is exempt from all other types of taxes, fees, duties, and other mandatory payments established by Turkmenistan's legislation. The taxable profit of the contractor is determined in accordance with international accounting and reporting practices adopted in oil operations and the provisions of the Agreement. The aforementioned provisions also apply to subcontractors. A comparative analysis with similar laws in other countries shows that the Law of Turkmenistan on "Hydrocarbon Resources" provides significant advantages in the fiscal sphere. Additionally, the law establishes currency, customs, and stock exchange benefits for contractors.

WHAT EFFORTS ARE CURRENTLY BEING MADE TO ENHANCE THE ATTRACTIVENESS OF TURKMENISTAN'S OIL SECTOR FOR FOREIGN INVESTORS?

We have already noted the advantages of the Law of Turkmenistan on "Hydrocarbon Resources." This law, along with other legislative acts on foreign investments and international agreements to which Turkmenistan is a party, serves as a key guarantee and a powerful legal instrument for attracting significant foreign capital to the country, thereby creating the prerequisites for the effective development of our country's vast hydrocarbon resources.

In addition, to increase the attractiveness of Turkmenistan's oil and gas sector, major investment forums are held annually, including abroad. This year, on April 24-25, 2024, in Paris, and on September 10-11 in Ashgabat, International Forums for Attracting Foreign Investment were conducted, including in the energy sector of Turkmenistan. Furthermore, from October 23-25 of this year, Ashgabat will host the "International Conference and Exhibition on Oil and Gas of Turkmenistan - 2024," which will explore all aspects of cooperation within our country's oil and gas complex, focusing on investments in optimizing production at mature fields and modernizing the Turkmenbashi and Seydi oil refineries. We believe that such significant events will allow us to present the latest investment projects.

Additionally, this year, on November 7-8 in Abu Dhabi (UAE), during the International ADIPEC Exhibition, a forum is planned to showcase investment opportunities for business development in Turkmenistan, particularly in areas such as oil and gas, energy, trade, transportation and communications, and industry. I would like to take this opportunity to invite all interested investors to participate in these important events.

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HOW DOES THE STATE CONCERN "TURKMENNEBIT" VIEW THE ROLE OF PARTNERSHIPS AND JOINT VENTURES WITH INTERNATIONAL OIL COMPANIES?

The implementation of large projects for the development of oil and gas resources in the current environment is a complex endeavor, typically carried out not by a single oil company independently, but with the involvement of external resources on a long-term basis. This approach necessitates a high degree of strategic cooperation among the interested participants and is crucial for the development of the country’s oil resources. Strategic partnerships based on mutually beneficial collaboration are a key factor in the success of large-scale investment projects. In Turkmenistan, Production Sharing Agreements are widely used. These contracts precisely define all the terms and conditions for conducting oil operations. To ensure the effective work of contractors under the Law and Agreement, all necessary conditions are established. It is important to note that the technical activities of contractors involved in oil operations are regulated by unified Rules for the Development of Hydrocarbon Fields in Turkmenistan, which eliminates the need for numerous approvals for oil operations from the relevant government agencies.At the same time, the Concern is ready to consider other forms of cooperation, particularly the possibility of negotiating Risk Service Contracts.

WHAT MEASURES IS THE STATE CONCERN "TURKMENNEBIT" TAKING TO ENSURE ENVIRONMENTALLY RESPONSIBLE EXPLORATION AND PRODUCTION?

Currently, projects are being implemented in collaboration with several international partners aimed at reducing methane emissions and decarbonizing the oil and gas sector. In parallel, practical measures are being taken. Today, the SC "Turkmennebit" utilizes all of the produced associated gas for gas lift oil recovery and is systematically replacing various gas distribution equipment. To prevent and address gas leaks, the production units of the Concern are undertaking cleaning and reconstruction of storage and technological tanks, repairing gas compressor units, and maintaining steel pipes in oil and gas pipelines. In the future, it is planned to significantly reduce methane emissions during operations, scheduled maintenance, extraction, transportation, and storage through a comprehensive modernization of all technological equipment.

We view strategic partnerships with leading international oil and gas companies that offer advanced and innovative technological solutions, based on mutually beneficial cooperation, as a key factor in the success of large-scale investment projects. This includes the development of hydrocarbon resources in licensed blocks in the Turkmen sector of the Caspian Sea and investments in optimizing production at mature fields. Our message remains the same: invest in Turkmenistan!