China invests USD1 billion into Turkmen gas fields development.

29/9 Tass 185

ASHGABAD, September 29 (Itar-Tass) - China's National Petroleum
Corporation (CNPC) has invested into the development of Turkmenistan's gas
fields one billion dollars, Deputy Prime Minister Baimurad
Khodzhamukhamedov, responsible for the republic's oil and gas sector, said
at a reception at the Chinese Embassy on the occasion of the 60th
anniversary of the People Republic of China Monday.

He said the presidents of both countries would attend a ceremony of
opening the gas pipeline Turkmenistan-Uzbekistan-Kazakhstan-China in
mid-December.
The CNPC is the sole foreign company in Turkmenistan to have gained an
operator's license for the exploration and extraction of hydrocarbons so
far.
The CNPC concluded a purchase-and-sale contract on the gas-rich
Bagtyyarlyk area on the right bank of the Amu-Darya River in 2007, and now
the corporation is conducting exploration of hydrocarbons and creatig
infrastructures.
In July, the CNPC and the Turkmen state-run concern Turmengaz signed a
gas purchase contract for buying 10 billion cubic meters of gas per year.
In addition, the State Agency of Hydrocarbons Management and Use under
the president of Turkmenistan and the PetroChina International Company
Limited concluded agreements on gas and condensate extraction in the
Bagtyyarlyk territory.
The Turkmen and Chinese governments have signed a framework agreement
on a favorable loan this year. Under the agreement, the State Development
Bank of China lent USD4 billion to the Turkmengaz state concern.

-0-gor/str