On June 12, Lukoil cemented a contract with Turkmenistan to develop three offshore fields . LUKOil joins the UAE's Dragon Oil PLC and Malaysia's Petronas as foreign direct investors in Turkmenistan's petrochemical industry. LUKoil currently produces 19% of Russia's crude oil, and operates in 25 other states besides the Russian Federation.
Last month, Kazakhstan, Turkmenistan, and Russia developed a new pipeline deal. Though most stories focus on the fact that Russia will continue to control Turkmenistan's gas (rather than shipping it through the South Caspian line through the Caucasus), the news really represents an advance for Turkmenistan's ailing distribution infrastructure. Non-Russian sources lost because they did not offer what Turkmenistan needed, and in a workable time frame.
In May, President Berdymuhammedov invited ChevronTexaco to make offers. One value of engaging Chevron is that they have very strong relations with Kazakhstan, and own part of the CPC pipeline out of Atyrau to Russia's port of Novorossiysk. Work with Chevron would therefore introduce Turkmenistan to new customers but also engage Russia and the veteran-of-many-multiparty-oil-deals Kazakhstan. Personally I hope Chevron moves out of this gate. It is a fabulous opportunity.
Azerbaijan is also taking an active role in courting Turkmenistan, chiefly for the Trans-Caspian line and the Nabucco project (I always think crackers and not oil when I see this name). These two projects were discussed at the Baku Oil & Gas Exhibition. Turkmenistan's gas was part of an overall view of non-Russian gas transit at this week's GUAM meeting. GUAM is an economic collective security organization composed of Georgia, Ukraine, Azerbaijan, and Moldova.
Further information:
LUKoil's web site (does not yet have a press release on the Turkmenistan deal, but still interesting)
Wikipedia explains NABUCCO Pipeline project, which lives on hope and paper, as it has yet to be developed
