Turkmen leader reappoints energy heads

Turkmen President Kurbanguly Berdymukhamedov told his government to accelerate oil and gas field developments and attract foreign investment after retaining his top energy officials in a cabinet reshuffle, state media reported on Friday.

Berdymukhamedov told ministers to prioritise construction of a trans-Afghanistan gas pipeline and the development of the Galkynysh natural gas field, the second-largest in the world.

"The head of state said it was imperative to undertake the necessary work to attract major foreign investment," state newspaper Neutral Turkmenistan reported from a government meeting.

Berdymukhamedov, a 54-year-old trained dentist, was re-elected this month for a second five-year term as president of Turkmenistan, a former Soviet republic holding more than 4 percent of the world's natural gas reserves.

He reappointed Deputy Prime Minister Baimurad Hojamukhamedov as the country's senior energy industry official, responsible for the development of the world's joint fourth-largest natural gas reserves and oilfields in the Caspian Sea.

Oil and Gas Minister Bairamgeldy Nedirov retained a post he has held since August 2008. Yagshygeldy Kakayev, head of the state agency for hydrocarbon resources - the body responsible for distributing licences - was also re-appointed.

Berdymukhamedov said the development of the Galkynysh natural gas field, better known by its previous name of South Iolotan, was a priority for his government.

British auditor Gaffney, Cline & Associates has ranked the field as the world's second-largest natural gas field after South Pars in Iran, saying last October it could contain between 13.1 trillion and 21.2 trillion cubic metres.

BP data show that Turkmenistan and Saudi Arabia each hold 4.3 percent of the world's natural gas reserves. Only Russia, Iran and Qatar have a larger share.

Turkmenistan, seeking to diversify its gas sales from Soviet-era master Russia, says it could supply energy to Europe and has already started pumping to China along a pipeline opened in 2009. Beijing has lent the country over $8 billion.

The absence of any firm production commitments has long been a source of frustration for Western energy majors active in the country, including Chevron Corp.

Although companies such as Malaysia's Petronas and Dubai-based Dragon Oil have been drilling for years on the Caspian Sea shelf, Chinese state-owned CNPC is still the only foreign firm with an onshore production sharing agreement.

Berdymukhamedov also emphasised construction of the 1,700-km (1,060-mile) Turkmenistan-Afghanistan-Pakistan-India, or TAPI, pipeline to deliver gas from Galkynysh to South Asian markets.

The proposed pipeline could pump 33 billion cubic metres a year but its route, particularly the 735-km (450-mile) Afghan leg, presents significant security challenges.

Participants must also secure funding and agree on delivery terms and prices.

Berdymukhamedov also appointed Sakhatmurad Mammedov as the new head of state gas company Turkmengaz. Mammedov was previously director of the country's largest oil refinery in the Caspian port city of Turkmenbashi.

Annaguly Deryayev was retained as head of the state oil company, Turkmenneft. He has been in the job since October 2010.

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