Foreign investment and export strategies in Turkmenistan

International interest in Turkmenistan’s hydrocarbon sector continues to grow through diplomatic, financial, and corporate channels. The European Bank for Reconstruction and Development has identified methods to mobilize capital through direct financing and risk-sharing to support private-sector growth. Major international players are actively pursuing development opportunities. Azerbaijan’s SOCAR has expressed interest in developing oil and gas fields, building on existing agreements for the ‘Dostlug’ field. Concurrently, Malaysia is seeking to expand its presence through potential collaborations between Malaysian firms and Italy’s Eni. Dragon Oil has also signaled confidence in the region through an agreement extending to 2035. At the ‘Oil and Gas of Turkmenistan’ conference, industry leaders emphasized the need for stable production-sharing agreements and predictable commercial terms. Building on previous announcements, Petronas Carigali Turkmenistan has reaffirmed plans to accelerate offshore exploration in Blocks 19 and 20, aiming to drill at least three wells between December 2026 and mid-2027, with the goal of reaching ‘first oil within four years of starting exploration.’ Efforts to expand the country’s energy footprint include discussions regarding new infrastructure to transport natural gas to European markets. The Turkmen Ambassador to Belgium and IOGP Europe have held talks focused on diversifying energy supplies and developing Caspian energy infrastructure to enhance EU energy security. However, experts note that Turkmenistan must meet European Union environmental standards, specifically regarding 2030 methane intensity regulations, to successfully access these markets. At the 2026 ‘Oil and Gas of Turkmenistan’ conference in Ashgabat, which saw a 40% increase in foreign attendance, Turkmengaz Chairman Maksat Babayev expressed support for the Trans-Caspian Gas Pipeline project. He stated the country is ready to supply gas through the corridor, noting that such efforts would require expanding the Galkynysh gas field and developing logistics, port infrastructure, and cables. Environmental risks were also a central theme.