Türkmennebit

Stock performance

History

Türkmennebit was established in 1996, in the same reorganization that created Türkmengaz, as Turkmenistan's national oil company, taking over the oil fields in the west of the country near the Caspian Sea that had been developed in Soviet times.

Business model

Türkmennebit produces crude oil and associated gas, mainly in the Balkan region of western Turkmenistan, supplying the country's refineries at Turkmenbashi and Seydi and exporting part of its output. Foreign companies such as Dragon Oil, Petronas, and Eni operate fields in the Caspian and in western Turkmenistan under production-sharing agreements alongside it.

Market position

Turkmenistan is a modest oil producer compared with neighboring Kazakhstan, and oil is far less important to its economy than gas; Türkmennebit is the main state player in the sector.

Country impact

Oil production supplies domestic fuel at heavily subsidized prices and adds to Turkmenistan's export earnings, complementing the dominant gas sector. Development of the Caspian offshore depends on foreign partners and on the unresolved maritime boundary questions that long complicated Caspian projects.