July 10, 1998 Mobil has signed a production sharing agreement (PSA) with the Government of Turkmenistan to pursue exploration and development opportunities in the Garashsyzlyk ("Independence") concession -- an approximately 4,500 sq km area within what was previously called Zone 1 -- onshore Western Turkmenistan.
In signing the agreement, Mobil became the first US oil company to sign a PSA with Turkmenistan. The signing of the PSA follows the formation of a strategic alliance announced earlier this year between Mobil, Monument Oil & Gas, Turkmenistan and its producing association Turkmenneft.
Mobil E&P Turkmenistan will operate the venture with a 52.4 % interest. Partners are Monument Oil & Gas (27.6 %) and Turkmenneft (20 %).

The Independence block is an onshore continuation of the prolific Apsheron trend in the South Caspian Sea. It lies immediately adjacent to the Nebitdag concession, which is now producing oil for export and in which Mobil has a 40 % interest.
The new production sharing agreement covers the exploitation of under-developed deeper resources discovered below the Kotor Tepe, Barsa Gelmes and other fields, as well as exploration and appraisal activities outside the boundaries of existing producing fields in the block.
"This agreement marks a significant step for Mobil," said M.W. Scoggins, president, International Exploration and Producing, Mobil Corp., who was at the signing ceremony. "In a year in which we have seen our first production and first exports from Turkmenistan, it marks another step towards our goal of building a major hydrocarbon reserve position in Western Turkmenistan. On a broader scale, it further enhances our strong and integrated position in the Caspian region, where we have joint ventures in Russia, Kazakhstan, Azerbaijan and Turkmenistan."
"Turkmenistan is a country with great ambition and substantial potential and we are proud to be making an important contribution to the efforts of the Government and people of Turkmenistan to realise their goals."