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Galkynysh gas field

Turkmenistan Expands Galkynysh Gas Field With $5.1 Billion Fourth Phase

Turkmenistan has renewed its focus on the $5.1 billion fourth phase of the Galkynysh gas field, with Gurbanguly Berdimuhamedov telling the Halk Maslahaty on September 23 that the expansion would increase gas production and boost the country’s export capacity. The CNPC-built project, launched in April, is expected to add ten billion cubic meters of commercial gas capacity a year. The fourth phase involves drilling production wells and building a commercial gas treatment facility. CNPC is also responsible for gas gathering and treatment systems, pipelines, and related infrastructure. Although CNPC is building the project, Turkmenistan is financing the expansion itself. In March, state-owned Türkmengaz was authorized to sign a turnkey design-and-construction contract with CNPC Amudarya Petroleum Company Ltd. Work on the fourth phase officially began on April 17. Galkynysh, in southeastern Turkmenistan, is one of the world’s largest gas fields and is central to Ashgabat’s plans to expand gas exports. China remains the main buyer of Turkmen gas, with supplies flowing through the Central Asia-China gas pipeline via Uzbekistan and Kazakhstan. Beijing imports around 30 billion cubic meters of Turkmen gas annually, so the planned additional capacity at Galkynysh would be roughly one-third of current annual supplies to China. Turkmenistan has not said how the additional ten billion cubic meters will be divided between domestic use and exports, or which export routes would carry any additional volumes. One potential outlet is TAPI, the planned Turkmenistan-Afghanistan-Pakistan-India pipeline, with a design capacity of 33 billion cubic meters per year. Construction of the 153-kilometer section from the Turkmen border toward Herat began in September 2024. By mid-September 2026, 122.3 kilometers of pipe had been welded and laid in Herat Province. As previously reported by The Times of Central Asia, construction of TAPI is advancing in Herat, while Turkmenistan is exploring supplying gas to the local Afghan market before the full pipeline reaches Pakistan and India. No timetable has been announced for extending the route beyond Herat.

Kashagan Oil Field

Kazakhstan Resumes Collection of $5.2 Billion Kashagan Fine

Kazakhstan has restarted enforcement proceedings to collect a 2.3 trillion tenge ($5.22 billion) environmental fine from North Caspian Operating Company (NCOC), operator of the Kashagan oil field, ending a three-week procedural pause. The proceedings resumed on September 29, according to the Justice Ministry’s online enforcement database. NCOC continues to reject both the allegations behind the fine and the penalty itself, and says it is challenging them through available legal channels. Collection had been suspended on September 7 after NCOC challenged the actions of a state enforcement officer. The Specialized Interdistrict Administrative Court of Atyrau Region requested the enforcement case materials, which required the collection process to stop while the documents were before the court. The Justice Ministry said at the time that the pause was procedural and that collection would resume. The court later rejected NCOC’s claim seeking to overturn the enforcement proceedings. The ruling was reported on September 28, and the enforcement status changed to active on the following day. The fine stems from a 2022 environmental inspection at Kashagan’s onshore facilities in the Atyrau Region that identified about ten alleged violations. Inspectors said more than 1.7 million metric tons of sulfur had accumulated at the Bolashak processing complex, while the operator’s permit allowed storage of no more than 730,000 tons. NCOC has maintained that its sulfur handling complied with Kazakh law and the permits issued for the project. Internal documents reported earlier by The Times of Central Asia showed that Eni had warned as early as 2017 that the project risked exceeding its permitted sulfur-storage capacity. The dispute has moved through several rounds of domestic litigation. The original penalty order was overturned in 2025 because of procedural defects, without dismissing the underlying environmental allegations. Regulators then reissued the penalty. The Atyrau Regional Court upheld the fine on June 19, clearing the way for compulsory enforcement after NCOC did not pay by the July deadline. Kazakhstan then stepped up pressure on the consortium. Enforcement proceedings began in July, and authorities froze NCOC property and vehicles. The company’s managing director was also warned of possible administrative and criminal liability for failure to comply with the court ruling. The domestic enforcement process is running alongside international arbitration. NCOC’s six foreign shareholders have challenged the penalty through treaty arbitration. Separately, NCOC said in July that a tribunal operating under the rules of the United Nations Commission on International Trade Law had issued interim measures barring enforcement while that arbitration remained pending. Kazakhstan’s Justice Ministry rejected NCOC’s interpretation of the interim order. It argued that the commercial arbitration tribunal could not prevent the state from enforcing environmental law and a final domestic court judgment. NCOC has continued to maintain that enforcement should not proceed while the arbitration is unresolved. Kashagan is one of Kazakhstan’s largest oil fields and one of the biggest oil discoveries of recent decades. Recoverable reserves are estimated at between 9 billion and 13 billion barrels. The field produced 18.2 million tons of oil in 2025. The consortium brings together...

Investment Forum

Ashgabat Hosts Turkmenistan Investment Forum This Week

Turkmenistan’s government says it expects more than 800 participants from dozens of countries to attend an investment conference in Ashgabat this week. A diverse group of more than 100 speakers is expected to participate in the Turkmenistan Investment Forum on October 1–2, including Saudi Prince Mansour bin Mohammed Al Saud, Deputy Trade Minister Mahmut Gürcan of Turkey, and Economy Minister Gevorg Papoyan of Armenia. The forum is being organized by Turkmenistan’s finance and foreign ministries, in partnership with Turkmen Congress, a company that organizes international forums and other events. It aims to highlight the country as a place of untapped economic potential, endowed with “the world’s fourth-largest natural gas reserves, a steadily diversifying economy, and major infrastructure modernization underway,” according to conference organizers. Turkmenistan is seeking to expand its role as a transit point on the Middle Corridor, a trade network linking China and Central Asia to Europe via rail and marine infrastructure. Even so, foreign investors have long had concerns about tight government controls, opaque bureaucracy, and other challenges in the Central Asian country. Delegates to the forum at the Yyldyz Hotel in Turkmenistan’s capital will discuss diversification of export routes for oil and gas, development of the Trans-Caspian Transit Corridor, public-private partnerships, agriculture, and the efficient use of natural resources. Representatives from the World Bank, the Asian Development Bank, and other international institutions will participate.

Oil and Gas

Kazakhstan to Auction 56 Oil and Gas Blocks

Kazakhstan will auction 56 oil and gas blocks across seven regions, offering investors a new round of exploration and production rights beyond its largest operating fields. The auction will take place on December 25, 2026, on the e-Qazyna platform, with applications accepted through November 18. The December round will take the number of blocks offered in 2026 to 112. December 25 is a normal working day in Kazakhstan, although the date coincides with Christmas Day in many countries whose energy companies are potential investors. The 56 blocks are spread across seven regions, including Kazakhstan’s main western oil-producing areas as well as Ulytau, Kostanay, and Kyzylorda. Most are being offered for exploration and subsequent production, while four are available directly for hydrocarbon production. Kazakhstan is already a major oil producer. According to the U.S. Energy Information Administration (EIA), the country held around 30 billion barrels of proved oil reserves as of January 1, 2025, while production of petroleum and other liquids averaged an estimated 1.9 million barrels per day in 2024. Tengiz, Kashagan, and Karachaganak are the country's primary sources of oil production. Under the auction terms, companies securing rights to the new blocks must carry out geological exploration and drilling within specified time frames. An exploration project must be prepared within one year after the contract is signed, required 2D seismic surveys must be completed within three years, and at least one well must be drilled within four years where stipulated by the terms of the individual block. During production, companies must annually allocate an amount equal to 1% of the previous year's production costs to training Kazakhstani specialists and another 1% to research and development in Kazakhstan. A further 1% of investment under the contract must go toward regional development and local infrastructure. Minimum local-content requirements are 70% for works and services and 30% for goods. Kazakhstani citizens must account for at least 80% of managers and their deputies, 90% of department heads, and all staff classified as specialists or skilled workers. For fields with initial geological reserves exceeding 100 million tons of oil or 50 billion cubic meters of gas, additional requirements apply. Contracts must include at least one commitment to establish or modernize processing facilities, supply hydrocarbons for processing in Kazakhstan, or implement another investment or socioeconomic project. The Times of Central Asia previously reported that more than 20 promising oil and gas structures had been identified in the country's Aral Basin.

Uzbekgaz

SOCAR and BP Prepare for Exploration Drilling in Uzbekistan’s Ustyurt Region

Azerbaijan’s SOCAR, Britain’s BP, and state-owned Uzbekneftegaz are preparing for exploration drilling across six blocks in Uzbekistan’s Ustyurt region. Following completion of a 3D seismic survey, the next stage involves processing the data and selecting a site for the first exploration well. Drilling will help establish whether preliminary estimates of 100 million metric tons of oil and 35 billion cubic meters of gas could translate into commercially recoverable reserves. The work covered the Boyterak, Terengquduq, Birqori, Kharoy, Qoraqalpoq, and Qulboy blocks in the Republic of Karakalpakstan. The seismic survey covered more than 3,000 square kilometers, compared with a minimum commitment of 1,000 square kilometers. The partners reviewed the completed fieldwork and discussed preparations for exploration drilling at a managing committee meeting in Tashkent on September 7. The data still need to be processed and interpreted, and no drilling location or date has been announced. Total investment in the project has been estimated at approximately $2 billion, with development dependent on a commercial discovery. The partners remain at the exploration stage and have committed to drilling one well. Decisions on further investment will depend on its results. Uzbek officials expect the six blocks could contain around 100 million metric tons of oil and 35 billion cubic meters of gas. Potential annual oil production has been estimated at five million metric tons. All three figures remain projections: seismic data help identify promising structures, but drilling is needed to confirm the presence and characteristics of hydrocarbons. Uzbekistan’s Energy Ministry, SOCAR, and Uzbekneftegaz signed a production-sharing agreement covering the six blocks in July 2025. SOCAR was designated the operator. BP joined the project in May 2026, acquiring a 20% interest from each of the two original partners. The British company now holds 40%, while SOCAR and Uzbekneftegaz retain 30% each. The deal marks BP’s return to exploration in Uzbekistan, where it first signed exploration agreements with the same partners in 2018 before withdrawing in 2021. The acquisition coincided with BP’s renewed emphasis on oil and gas investment. The company had previously reduced its exploration portfolio as part of a shift toward low-carbon energy, but subsequently revised its strategy and refocused on its traditional business. When BP joined the project, its regional president for Azerbaijan, Georgia, and Turkey, Gio Cristofoli, said the company saw significant resource potential in Uzbekistan. He said participation in the agreement would expand BP’s exploration portfolio and support its long-term organic growth. For SOCAR, the Ustyurt survey is its largest seismic exploration project outside Azerbaijan. In June, the company reported that more than 80% of the seismic program had been completed and that initial results were providing insights into deeper geological structures. SOCAR announced the completion of fieldwork in July, with data processing expected to finish in the first quarter of 2027. The partners have developed a work plan through 2029. Uzbekneftegaz head Abdugani Sanginov previously proposed accelerating the project and beginning drilling by the end of 2027, but an approved drilling schedule has not been published. Uzbekistan needs to find...

Oil and Gas

Kazakhstan Pauses Collection of $5 Billion Fine from Kashagan Operator

Kazakhstan has suspended enforcement proceedings to collect about $5 billion from North Caspian Operating Company (NCOC), the operator of the Kashagan oil field. The fine itself remains in force. The pause followed a new challenge by the company in a Kazakh court, and the Justice Ministry has said it intends to resume collection efforts. Enforcement proceedings involving 2.3 trillion tenge ($5.06 billion) were suspended on September 7. NCOC challenged the actions of a state enforcement officer, after which the Specialized Interdistrict Administrative Court of Atyrau Region requested the case materials. While those materials are before the court, enforcement proceedings must be suspended. Before the suspension, authorities had stepped up collection efforts. The deadline for voluntary payment expired on July 20, after which the authorities began enforcement proceedings. On July 21, NCOC’s property and vehicles were frozen. The company’s managing director, Giancarlo Ruiu, was also warned of possible administrative and criminal liability for failure to comply with the court ruling. At issue is sulfur produced as a byproduct of processing oil and gas at Kashagan. Kazakhstan’s environmental authorities accused NCOC of storing volumes exceeding the limits set by its environmental permit. The consortium rejects both the allegations and the fine. Although the authorities’ original order was overturned over procedural violations, environmental regulators subsequently issued a new one. The reissued penalty was upheld by Kazakh courts, including the Atyrau Regional Court in June 2026, allowing the authorities to move toward enforcement. The dispute also has an international legal dimension. NCOC’s foreign shareholders have challenged the penalty through international treaty arbitration. Separately, NCOC said in July that a tribunal applying the rules of the United Nations Commission on International Trade Law (UNCITRAL) had issued an interim order barring Kazakhstan from enforcing the fine while those proceedings were pending. Kazakh authorities rejected NCOC’s interpretation of the order, arguing that the commercial arbitration tribunal could not prevent the state from enforcing its environmental laws and domestic court judgments. The Justice Ministry has made clear that the current suspension stems from NCOC’s challenge to the enforcement officer in a Kazakh administrative court, rather than from the UNCITRAL order. Kashagan is one of Kazakhstan’s largest oil fields and one of the world’s biggest oil discoveries of recent decades. Recoverable reserves are estimated at 9 billion to 13 billion barrels. The field produced 18.2 million tons of oil in 2025. The project is backed by some of the world’s largest oil companies. KazMunayGas holds 16.88%, while Eni, ExxonMobil, Shell, and TotalEnergies each hold about 16.81%. CNPC owns 8.33% and Japan’s Inpex 7.56%. For Kazakhstan, Kashagan is one of its main sources of oil production and export revenue. For the international companies, the dispute is also a test of the operating environment at the country’s largest oil fields. Kazakhstan accounts for around 2% of global daily oil supply, and the Kashagan case comes amid several multibillion-dollar legal disputes between Astana and international oil companies. The environmental fine is not the only dispute surrounding Kashagan. Kazakhstan has also brought claims against investors over costs...