RusEnergy

11-07-2006 Kommersant – Turkmenistan’s President Saparmurat Niyazov has offered to Russia and Germany to construct a gas pipeline to Europe able to ship up to 40 bln cu meters of gas a year. Niyazov counts on Iolotan field to double gas output, as its reserves are estimated at 7 trln cubic meters, twice as much as in Schtokman. In the environment of strong competition with the European Union, Russia cannot ignore the initiative, and Gazprom is studying documentary confirmation of the reserve amount.
Saparmurat Niyazov first announced the reserves of Turkmenistan’s biggest field past Friday, when he was meeting German Foreign Minister Frank-Walter Steinmeier. Niyazov said the gas biggest well, South Iolotan, has blown out; the reserves are estimated at 7 trln cu meters.
Some time earlier, Niyazaov said that Russia made a contract of super profits and Gazprom will be the first foreign company admitted to produce from the continent. So far, all foreigners have been licensed only for the shelf production.
“Really, in time of our last meeting in Ashkhabad, Turkmen president spoke to me about Iolotan reserves,” Alexander Ryazanov, deputy chairman at Gazprom management committee, said yesterday. “We will look at their documentary confirmation. I think we will study it all and decide on expediency of joining the project before the end of the year.”
Gazprom is rather skeptical when it comes to Iolotan reserves. “Turkmenia has long promised to open exploration conducted by western companies, but has presented nothing of it so far. But the geological survey of Soviet time showed the greatest reserves were concentrated in Dovletobad, where the production is being carried out now,” a source with Gazprom specified.