RusEnergy

21 November 2006 - Upstream onLine - Turkmenistan has handed China National Petroleum Corporation (CNPC) a $152 million contract to help explore the South Yolotan field, a field Turkmen officials claim hold 7 trillion cubic metres of natural gas. President Saparmurat Niyazov said in an official decree that CNPC would get a three-year contract to help drill 12 gas wells at the South Yolotan field and other locations. State-owned CNPC was not available for comment. The contract was only for drilling and no further details were provided. Niyazov announced the discovery of the field earlier this month, describing it as "massive". Turkmenistan has not disclosed the results of an international audit of its reserves. If the find is confirmed, it would dwarf Russia's big Shtokman field. Russian media have quoted sources at Russia's gas export monopoly Gazprom as saying the company doubted the Turkmen assessment of the South Yolotan reserves. Turkmenistan produces about 60 billion cubic metres of gas per year. Gazprom buys most of the gas and controls Turkmen export routes.