THE PRESIDENT OF TURKMENISTAN HOLDS SESSION ON DEVELOPMENT OF OIL AND GAS INDUSTRY

On February 2, President Gurbanguly Berdimuhamedov has held video conference working session on development of fuel and energy complex of the country with participation of some Deputy Chairmen of the Cabinet of Ministers as well as heads of profile structures.

Opening the session, during which the outcomes of work of oil and gas complex in the last year have been reviewed, the head of the state highlighted that oil and gas sector of national economy is steadily developed and new oil and gas deposits are put into production according to the energy strategy. New oil and gas production facilities are built and big international projects are implemented.

At the same time, the situation at the world oil markets is unstable due the known events occurring recently. Negative factors in the world economy have caused the reduction of consumption of crude oil and petroleum products, which in its turn, has made a significant impact on the cost of energy carriers.

Leader of the nation Gurbanguly Berdimuhamedov has noted that in its turn, these factors make negative impact of production and financial indicators of the country, having mentioned the drop of oil price has caused the reduction of price on jil and gas products, which are one of the main export production of oil and gas complex of Turkmenistan.

Continuing the session, President Gurbanguly Berdimuhamedov has highlighted the importance of objectives related to efficient organization of work of the industry under current conditions, support of the growth rates of oil production and fulfilment of program obligations of this industry this year.

At the same time, special attention has been paid to production and sale of the main petroleum products, which is to support the achievement of optimal economic indicators in current period.

First, the State Minister – Chairman of the State Concern Türkmengaz B. Amanov has presented his report.

The head of the Concern has reported to President Gurbanguly Berdimuhamedov on activity of the structure under his supervision, which is carried out using available capabilities for production and processing of natural gas and increment of its export.

The information about joint activity with foreign partners as well as on measures for development of Galkynyş Gas Field has been presented within the report.

The head of the state has expressed his discontent that some deficiencies are admitted in organization of works at the facilities of the State Concern Türkmengaz. Having outlined modernization of the infrastructure, enhancement of fields’ production output, making of conditions for personnel of the sphere among priority aspects, the President of the country addressed the Minister with instructions on successful fulfilment of these works.

Effective solution of the objectives related to the processing of natural gas, increment of export volumes would strengthen national economy and at the same time, will boost regional cooperation. Therefore, the work in this direction has to be based on modern practice, latest scientific achievements and innovative technologies, leader of the nation Gurbanguly Berdimuhamedov said, having given relative assignments.

Continuing the working session with heads of fuel and energy complex, Chairman of the State Concern Türkmennebit G. Baygeldiyev has reported on program activity for increment of oil production as well as on fulfilment of assignments given by the Head of Turkmenistan for integrated development of the industry and introduction of innovative methods into production.

It was mentioned that necessary measures are taken for increment of production output of oil and gas fields as well as for survey, exploration and development of perspective hydrocarbon deposits and increment of production of raw materials. All of these is aimed at successful solution of objectives outlined by the head of the state for enhancement of potential of the sphere, implementation of new technologies into its structures and attraction of foreign investments.

Summing up the report and noted slow rates of woks for improvement of efficiency and profitability of the State Concern Türkmennebit, President Gurbanguly Berdimuhamedov expressed his discontent with measures undertaken in this direction.

Oil industry of the country has to become one of the leading and profitable branches, which is one of the priorities of the state policy of Turkmenistan. Successful solution of objectives in this sphere would make positive effect on financial and economic indicators of profile structures and on strengthening of national economy, the head of the state noted and addressed relative instructions.

Further, Chairman of the State Corporation Türkmengeologiýa M. Raziyev has reported on measures taken for geophysical studies and exploration drilling works in different parts of the country, which are aimed at finding of new deposits of oil and gas, minerals, water and other natural resource.

It was reported that geophysical surveys including 2D and 3D seismic works are harried out at the fields with perspective of oil, gas and condensate layers. Drilling of exploration wells is carried out at the fields detected after second analysis.

Having listened to the report, President Gurbanguly Berdimuhamedov expressed discontent with work of the State Corporation Türkmengeologiýa.

The head of the state has requested to accelerate the rates of geological survey works, especially the works for search and detection of oil deposits and opening of new oil and gas fields.

Having noted that introduction of innovative methods based on modern high technologies to the activity of the State Corporation would support to significant increment of efficiency of the industry, the leader of the nation gave certain assignments.

Video conference working session has been continued with the report of General Director of Turkmenbashy Refinery Complex D. Chishiyev.

The head of Turkmenbashy Refinery Complex has reported on works under the implementation of long-term Program of development of oil and gas industry, according to which the measures pointed out by leader of the nation Gurbanguly Berdimuhamedov for efficient processing of hydrocarbon materials, increment of production volumes of competitive petroleum products demanded in the world markets and expansion of variety of such products are taken.

It was mentioned that plan for oil refining has been performed by 101.7 percent, production of various gasoline by 104.5 percent, diesel fuel by 104.4 percent, and polypropylene by 102.2 percent for the period under review. The growth rate of production of liquefied gas was equal to 117.3 percent.

Having listened to the report, the President of the country has expressed discontent with the work of the complex and with the fact that objectives given to Turkmenbashy Refinery Complex are solved slowly.

The leader of the nation has focused on such aspects as enhancement of the depth of oil refining, production of qualitative eco-friendly commodities, which are competitive in the world markets, active implementation of modern technologies into production.

In this context, having noted the importance of further steadfast development of the industry, provision of satisfaction of growing demand of local consumers on various petroleum products, expansion of export geography, the head of the state addressed the head of Turkmenbashy Refinery Complex with specific instructions.

After, President Gurbanguly Berdimuhamedov has made direct video call to Director of International University of Oil and Gas Sh. Abdrahmanov, who reported on integrated works for training of qualified specialists for national fuel and energy complex.

It was mentioned that education programs combine theoretical and practical lessons on order the level of education to meet high international requirements.

According to the approved plan of the University for 2020 – 2021 Academic Years, the university educates specialists in 23 directions and 5 bachelor courses have been organized. This year, 1,480 students have entered the university and 15 students applied for master degree.

The director has also informed that specialists in such directions as chemical engineering, standardization and certification, technological engineering, environmental engineering are educated for petrochemical industry.

According to the instructions of President Gurbanguly Berdimuhamedov, International Oil and Gas University, which is a member of International University Association, arranged work for organization of special video classes with participation of professors of big high educational facilities of the world and for exchange of practice as well as practical webinar classes are conducted. It was also informed that all educational plans include Digital Economics discipline.

Having listened to the report, the leader of the nation has called Deputy Chairman of the Cabinet of Ministers M. Geldiniyazov. Having addressed the Vice-premier and the Director of international University of Oil and Gas, the head of the state noted that development of science, technologies, improvement of quality and level of youth education, training of talented specialists for work in all spheres of fuel and energy complex are important time requirements.

Despite the construction of modern high technological International University of Oil and Gas has been built, the geological, exploration, oil and gas production and processing industries of Turkmenistan are not provided in full with qualified personnel, President Gurbanguly Berdimuhamedov stated.

In addition to management, field and IT specialists, the university has to train professional teachers, scientific personnel and candidates of sciences on this directions, the head of the state said.

The President of the country has noted that it is necessary to activate cooperation with international universities and other competent profile structures using modern communication means for training of qualified personnel for oil and gas industry and scientific and practical work. In addition, Turkmen students have to participate in prestige international contests and scientific works developed by students have to be introduced into production.

Following the world practice in training of specialists for oil and gas sphere, it is necessary to introduce new methods and know-hows in the university, to teach according to international standards, to attract professional specialists from foreign countries to this work, the head of the state noted and gave certain assignments to the officials.

President Gurbanguly Berdimuhamedov has focused on the importance of analysis of the requirements of oil and gas complex in various specialists and on the necessity of development of the program of training of qualified personnel. The leader of the nation has noted that it would be reasonable to open the Center of training of teachers, scientific personnel, candidates of science for oil and gas sphere under the university.

The head of the state has also pointed out that at the same time, it is necessary to attract international education facilities including training centers of competent companies such as CNPC, Dragon Oil, Hyundai, LG, Lukoil, ARETI and many other companies, which are reliable partners of our country.

Speaking of this, the leader of the nation has noted that it is necessary to establish bilateral relations with prestige high educational institutes of oil and gas sphere of foreign countries for exchange of practice, introduction of modern methods of education of qualified specialists on the level of the world standards. At the same time, the students, teachers and scientific workers of our country have to participate actively in international contests.

Summing up what was said, the head of Turkmenistan gave certain instructions to the vice-premier and director of the university on development of proposals in this sphere.

During the session, President Gurbanguly Berdimuhamedov gave floor to Deputy Chairman of the Cabinet of Ministers M. Meredov.

The vice-premier has reported on fulfilment of instructions of the head of the state for development of oil and gas complex, introduction of latest scientific achievements, advanced technologies and international practice to fuel and energy complex, attraction of foreign investments, increment of production volumes of oil, gas and petrochemical production.

It was mentioned that relative work is carried out for solution of the set objectives for discovery and development of new deposits rich with oil and gas.

The vice-premier has also informed about planned measures for further development of oil refining industry, introduction of innovative technologies into production, making of new petroleum products, which are demanded in foreign markets, and full provision of local consumers with these commodities.

Having listened to the report and expressed discontent with the level of work carried out in the industry, President Gurbanguly Berdimuhamedov noted that volumes of oil and gas production, including the production under the Production Sharing Agreements, have been reduced and highlighted the necessity of timely practical measures for improvement of these indicators, overhaul and reconstruction of oil and gas wells as well as acceleration of rates of this works.

The head of the state has pointed out that it is necessary to take effective measures to accelerate geological survey works, increment of volumes of discovered and proven reserves of oil and other natural resources. It is necessary to put all efforts for attraction of direct and indirect foreign investments to oil refining and petrochemical industry, the leader of the nation said.

Having focused on importance of development of new markets of petroleum and petrochemical production as well as perspective routes of gas export, President Gurbanguly Berdimuhamedov highlighted the necessity of using design capacity of Turkmenbashy Refinery Complex by using crude oil produced under the Production Sharing Agreements.

In this regard, it is necessary to solve the issues of procurement of oil on market price and its further refining in economically beneficial conditions as well as export of produced petroleum production and receiving additional income, the leader of nation continued.

Despite International University of Oil and Gas in the country, which is provided with advanced technologies as well as the fact that practical and educational training of personnel is provided during construction, the oil and gas spheres require qualified specialists, the head of the state continued. The level of training personnel remains on low level and we cannot accept this fact, the President of Turkmenistan highlighted.

Having noted that expenses for production and processing of hydrocarbon resources and cost of production have been increased, leader of the nation Gurbanguly Berdimuhamedov demanded the vice-premier to make necessary work for improvement of this indicators.

Continuing, the head of the state has noted that although modern complex with high-tech laboratories has been built for scientific and research institute of natural gas, scientific activity in the industry is not carried out on proper level.

The President of the country has also focused that electronic tender platform designated for exercising tenders for procurement of products, works and services has not been established in oil and gas sphere taking into account international practice, having demanded the vice-premier to take proper measures in this direction.

During the session, the head of the state has ordered Deputy Chairman of the Cabinet of Ministers G. Mushikov to hold under control financial status of ministries and profile departments, facilities of oil and gas complex as well as has given instruction to Prosecutor General of the country B. Atdayev to continue analysis of financial and economic indicators of the complex.

Summing up the session, President Gurbanguly Berdimuhamedov highlighted that all participants of the session have to work hard this year for improvement of activity and use of production potential of oil and gas complex.

It is necessary to introduce digital systems to production and enhance the efficiency of organization of work of production facilities of oil and gas complex suing the latest scientific and technological achievements as well as to attract foreign investments to this sphere.

The President of Turkmenistan has reprimanded Deputy Chairman of the Cabinet of Ministers M. Meredov for unsatisfactory performance of his duties and made last warning to correct admitted deficiencies as soon as possible.

In addition, head of the state Gurbanguly Berdimuhamedov has reprimanded Chairman of the State Concern Türkmennebit G. Baygeldieyv for unsatisfactory performance of his duties and outcomes of work of the Concern last year.

The State Minister, Chairman of the State Concern Türkmengaz B. Amanov was reprimanded for improper fulfilment of his duties and deficiencies admitted in his work.

In addition, Chairman of the State Corporation Türkmengeologiýa M. Roziyev and General Director of Turkmenbashy Refinery Complex D. Chishiyev have been reprimanded for unsatisfactory performance and outcomes of the last year. The relative documents have been signed.

The President of Turkmenistan has specified current directions of coming work for expansion of production potential, multidimensional development and increment of export capabilities of fuel and gas complex to the participants of the session, having ordered to take measures for the fulfilment of these instructions.

Leader of the nation Gurbanguly Berdimuhamedov has pointed out that making regular analysis of financial and economic condition, production and business activity of oil and gas complex, it is necessary to provide uninterrupted operation of all production facilities. At the same time, special attention has to be paid to introduction of new methods of management and training of professional specialists.

It is also necessary to control and reduce the cost of production by analysis of expenses of facilities and establishments of oil and gas complex and by elimination of unnecessary expenses.

Taking into account that the government has sent significant expenses to the industry, it is necessary to improve production efficiency and profit of facilities, the President of the country continued.

It was mentioned that it is necessary to achieve the increment of prices on exported petroleum products, which are sold on competitive base through the State Commodity and Raw Material Exchange, to increase the scale of activity of National Petroleum Company NAPECO attracting this company to work for development of new fields.

At the same time, President Gurbanguly Berdimuhamedov pointed out that it is necessary to bring production facilities, in particular Ahal plant for production of gasoline from natural gas and polymeric plant in Kiyanly to full project capacity. It is necessary to provide the above-mentioned plants with auxiliary chemicals, spare parts on timely basis and introduce new management methods for provision of uninterrupted production.

The head of the state has focused on importance of increment of financial income by increment of sale of production including the sale in foreing currency.

In this regard, the President of Turkmenistan has ordered to analyse in detail the prices on procured imported production and raw materials, which have not to be higher that prices for other countries in the region as well as to establish direct cooperation with producers of commodities required fro national oil and gas complex.

The head of Turkmen state has requested to make an urgent root cause analysis of reduction of production of gas by foreign partners – the companies, which work in the country on Production Sharing Agreements, and to take necessary measures for resumption of stable rates of production.

Leader of the nation Gurbanguly Berdimuhamedov has given specific instruction regarding increasing the volumes of crude oil production by using modern advanced technologies and methods, enhancement of efficiency of drilling works, timely overhaul and reconstruction of oil producing wells as well as on uninterrupted supply of crude oil to Turkmenbashy Refinery Complex.

Having highlighted again that work of production branches have to be brought up to full project design capacity, the head of the state ordered to take relative measures for improvement of the depth of processing of hydrocarbon resources and quality of production of petrochemical goods.

It was mentioned that for these purposes, it is necessary to introduce modern innovative technologies and make timely maintenance and service of production units.

Speaking of improvement of resource base of the industry, the President of the country has pointed out that efficiency of geological survey, seismic and drilling works, definition of reserves of gas, oil and gas condensate has to be enhanced using modern technologies including 3D measuring methods.

Head of the State Gurbanguly Berdimuhamedov has requested to pay the utmost attention to training of professional specialists for the facilities of the industry, to make necessary works for discovery and development of new fields as well as to use advices of leading scientists and teachers of scientific and research institutes in activity of the state concerns and corporations.

Addressing Vice-premier G.Mushikov, the President of Turkmenistan has requested to make regular analysis of financial and economic condition and expenses of oil and gas complex, to improve the provision with financial resources, to make revision of debts including foreign currency debts.

The head of the state said that it is necessary to prepare specific proposals on improvement of equipment and resource provision of oil and gas producing facilities and geological survey expeditions, on financial sources of works for overhaul and reconstruction, which have to be carried out at production facilities as well as on attraction of foreign investments to new projects.

Finishing video conference working session, President Gurbanguly Berdimuhamedov has wished strong health, family wealth, big success in work for prosperity of sovereign Motherland to the participants of the session.

The President of Turkmenistan holds session on development of oil and gas industry