The effects of Turkmenistan's new gas fields to the world gas map

by Dowran Orazgylyjow

Turkmenistan is promptly transformed and goes forward to the Epoch of Great Revival. These transformations strengthen the country's authority in the world scene.
Ashgabat will host the "Reliable and stable transit of energy and its role in ensuring of sustainable development and international cooperation" international conference. A world-level event, previously reflected in the United Nations' same name resolution, the forthcoming forum will be another important step fostering the international dialogue aimed at the solution of such a present-day global problem as energy security.

As it is known, the President of Turkmenistan, Gurbanguly Berdymukhamedov, determined a new vector of this interaction by putting forward an initiative to elaborate a special international convention for strengthening of political and legal basis of the international cooperation in the energy sector and specifically in the field of construction and operation of the transnational pipelines,other energy, transport and communication infrastructures.
In fact, the talk is aimed at working out a new efficient mechanism to promote practical realization of all international agreements on production and consumption of energy carriers, their delivery to the world markets, including bilateral interstate agreements and large-scale transnational energy projects such as the under-construction Turkmenistan-China and Caspian coastal gas pipelines, and the projected Turkmenistan-Afghanistan-Pakistan-India gas pipeline.

As stressed by President Berdymukhamedov in his speech on January 15, 2009 enlarged meeting of the Cabinet of Ministers, Turkmenistan stands for free energy resources transit, notwithstanding spontaneously emerging world political, economic and other problems.
"Our goal," the head of the Turkmen state said, "is to establish an international system of cooperation aimed at ensuring mutual interests, based on economic feasibility and sound competitiveness. Naturally, all this is to be backed by a perfect legal base."

Timeliness of the Turkmen leader's idea -- to enhance international political and legal guarantees for energy transportation system security -- was in the clearest possible way confirmed by the last year's UN Resolution on "Reliable and stable transit of energy and its role in ensuring of sustainable development and international cooperation" draft which was put on the agenda of the UN General Assembly's 63rd session by the initiative of the Turkmen party.
It is worth mentioning that the UN Resolution, unanimously approved by the delegates of 192 countries of the world, was co-authored by some 60 countries, including all neighbour-countries of Turkmenistan, the UN Security Council's 5 permanent members: the USA, Russian Federation, China, Great Britain and France, as well as Austria, Germany, Armenia, Georgia, Belarus, Moldova, Ukraine, and others.

As it is known, the audit of the South Yolotan-Osman and Yashlar gas fields, located in the eastern part of the AmudaryaRiver basin, had been carried out by the authoritative international adviser Gaffney Cline and Associates, the results of which have been promulgated in the international community. In accordance with available information of the independent auditing company and under the present data, the deposits of South Yolotan-Osman fields make up the following: the low estimate -- 4 tcm, the optimum estimate -- 6 tcm, and the high estimate -- 14 tcm of gas.
According to the auditor's conclusion, the deposit of Yashlar field makes up: the low estimate -- 0,25 tcm, the optimum estimate -- 0,675 tcm, and the high estimate -- 1, 5 tcm of natural gas. This earns the country an authority as energy power and as a reliable partner.

There are more than thousand oil and gas fields in Turkmenistan, from which more than 150 are discovered fields, only 50 of which are being developed. Deposits of South Yolotan-Osman, Yashlar, Dauletabad and Shatlyk fields are recognized being the richest in the world. Huge deposits are also available on a Turkmen shelf of the Caspian Sea.
Thus, based on the volumes of natural gas, Turkmenistan is in the top of the countries with the largest gas reserves in the world. The volumes of only two fields, South Yolotan-Osman and Yashlar -- not taking into account the hundreds of other fields -- place Turkmenistan according to the low estimate at the 9th place, according to the optimum estimate at the 5th place, and by the high estimate at the 4th place in the list of countries with the largest gas reserves in the world.

This is a huge wealth of which we have the right to be proud of. This fact also leads to an update of the world gas map. For example, the deposits of those two fields -- confirmed by the authoritative auditor company -- will cause the world gas reserves data to be rewritten.
Considering the above mentioned, the world gas reserve would be increased by the low estimation to up to 2,3 %, by the optimum estimation to up to 3,7 % and by the high estimation to up to 8,7 %. This, inits turn, proves availability of huge volumes of natural gas in the territory of Turkmenistan.

As the international auditor company has confirmed, South Yolotan-Osman is one of the largest fields of the world. In order to understand a role of the field in the world scene, it is enough to analyze the deposits of other fields. According to data of the International Energy Agency the largest deposit of gas in the world is the North Dome South Pars (41 tcm) field, located on the territory of Iran and Qatar. Other large deposits include Russian Uregoi (5,3 tcm) and Bovnenskoye (4,4 tcm) fields.
Considering the economic gain of the discovered fields in our country, it was possible to understand the importance of the resolution of President Gurbanguly Berdymukhamedov on carrying out of the international audit. For today, the price of 1 thousand cm of gas is $ 350. Money equivalent of the two fields taken together under the low estimation makes up $ 1, 5 tn, by the optimum estimation -- $ 2,33 tn, by the high estimation -- $ 5,5 tn. The given fact opens perspective opportunities for the country.

It is necessary to note that acknowledgement of new fields of hydrocarbon resources puts specific targets before the oil and gas branch on realization of the development program. According to the development program of the industry up to 2030, it is supposed that Turkmenistan in 2010 will produce 120 bn cm of gas, by 2020 extraction will increase to up to 175 bn cm, and in 2030 extraction would equal to 250 bn cm of natural gas.
It is planned to reach the aggregate production of natural gas in volume of 4,1 tcm for the period from 2007 to 2030.

As could be seen, South Yolotan-Osman and Yashlar fields, even under the low estimation will allow sustaining the projected levels of natural gas production from Turkmenistan bowels by 2030.
While considering the high estimation of the given fields and other fields it becomes obvious that Turkmenistan has real opportunities to become one of the basic suppliers of "bluegold" at the world markets. Results of the audit have confirmed that Turkmenistan possesses sufficient volumes of natural gas resources in order to supply the hydrocarbon both via operating gas pipelines, and those under construction.

According to the development program of the oil and gas industry, in 2010 Turkmenistan plans to export up to 100 bn cm, by 2020 -- 140 bn cm, and by 2030 -- 200 bn cm. The planned volume of the delivered gas would equal to 3.2 tcm.
At export delivery by Turkmenistan in volume of 200 bn cm per year, the deposits of only South Yolotan-Osman field would guarantee supply to up to 2085. Thus, when considering the volumes of other gas fields, then Turkmenistan is capable to export natural gas over a long term.

It is important to note that as a result, the discovery of a new field in our country increases the interest of foreign partners to Turkmenistan. Data of the international independent audit have been reported in the world mass-media.
After approval of hydrocarbon resources by the international auditor-company, the Austrian ambassador at large, responsible for project Nabucco, Ms Maria Reich-Rorvig, and CEO OMV, Mr Wolfgang Ruttenstorfer, visited our country, the fact which caused a wide resonance in the world press concerning the further perspective development of the Nabucco project. As is known, Austria is the key party in the Nabucco project which should become the guarantor of gas delivery safety to Europe. Austrian company OMV is the general coordinator of the given project.

Reserves of the "blue gold" of the country allow the supply of expected volumes of natural gas and satisfy the interests of two friendly parties. As President Gurbanguly Berdymukhamedov has noted, Turkmenistan is devoted to a principle of a multiple view of the energy resources export at the world markets.
Turkmenistan is ready to consider any business proposals from the partners. It testifies the constant care of the President for an even greater development of well-being of the country.

This article was published in Magazine "Oil, Gas and Mineral Resources of Turkmenistan", 1(4), 2009, p. 56-63, Ashgabat-Turkmenistan.