CNPC consortium wins $9.7 billion Turkmenistan gas contract
01 Jan 2010
China National Petroleum Corp (CNPC), along with companies from South Korea and the United Arab Emirates (UAE), has won contracts worth $9.7 billion to develop the Yolotan natural gas field in Turkmenistan, one of the biggest five natural gas deposits in the world.
The field is estimated to hold about 6 trillion cu m of gas reserves.
The consortium includes CNPC, South Korea's LG International Corp and Hyundai Engineering Co as also the UAE's Gulf Oil & Gas Fze and Petrofac International Corp.
The Turkmen media quoted a CNPC spokesman as saying yesterday that he was not clear about the deal, but added that Turkmenistan was one of the most important natural gas markets for the company. He, however, did not elaborate on the particular deal.
In April 2006, CNPC and the petroleum ministry of Turkmenistan reached a basic agreement on the cooperative natural gas project. CNPC signed the product sharing contract on the Bagtyiarlyk area at Amu Darya Right Bank in Turkmenistan and the Sino-Turkmenistan natural gas purchase and sale agreement with Turkmenistan Petroleum Resource Management and Utilization Bureau and Turkmenistan Natural Gas Konzern, respectively.
A CNPC executive yesterday told China Daily that the output of natural gas from Bagtyiarlyk would amount to 5 billion cu m by next year.
