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CNPC in Turkmenistan

CNPC has been operating in Turkmenistan since 2002 and now has oil and gas assets and equity in the country, while also providing oilfield services.
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Amu Darya Natural Gas Project

On July 17, 2007, CNPC signed a production sharing agreement to explore and develop gas fields on the right bank of the Amu Darya River, and a natural gas sale-and-purchase agreement with the Turkmen State Agency for Management and Use of Hydrocarbon Resources and Turkmengaz respectively. According to the agreements, Turkmenistan will export 30 billion cubic meters of natural gas to China annually for 30 years. In August 2007, the Amu Darya project was launched on the issuing of the exploration and development license by President Gurbanguly Berdymukhammedov.

In August 2008, CNPC and Turkmengazi State Concern signed a technical agreement on the Natural Gas Purchase and Sales and Technical Agreements to extend their cooperation in the gas exploration and development project on the Amu Darya River. Consisting of Block A and B, the project is located in Bagtyiarlyk contract area on the Right Bank of Amu Darya River in Turkmenistan.

In December 2009, the No.1 Gas Processing Plant of the Amu Darya natural gas project, which is the most technologically advanced natural gas processing plant with biggest capacity in Central Asia, became operational, with a processing capacity of 5 billion cubic meters.

2010 saw the start of natural gas production together with initiation of the second phase construction in our natural gas exploration and development project on the Right Bank of Amu-Darya River. Efficient and orderly seismic acquisition and drilling in contract blocks led to significant increases in reserves in Samandepe gas field of Block A, as well as important discoveries that opened up new directions for exploration in the southern, eastern, and central parts of Block B. Through renovating mature wells and developing new ones, both the production of individual wells and total capacity were much increased at the Samandepe gas field. Total production of natural gas in 2010 exceeded 4 billion cubic meters. New acidizing techniques and optimal re-perforation measures increased the daily average capacity per mature well from 300,000 cubic meters to 650,000 cubic meters. The daily average output per newly started well reached 1-2 million cubic meters, thanks to horizontal and high-angle well drilling. The First Natural Gas Processing Plant processed 16 million cubic meters of natural gas and supplied 14.5 million cubic meters of commercial gas to the Central Asia-China Gas Pipeline per day.

On October 26, 2010, natural gas was input into Line B of the Central Asia-China Gas Pipeline, marking the operation of the dual line. In 2010, it transported 4.38 billion cubic meters of natural gas from Turkmenistan to China.

In 2011, high-yield gas flow was obtained from Block B of Amu-Darya gas project during exploration. Production capacity building works in the block commenced.

On June 30, 2011, the natural gas coming from the Right Bank of Amu-Darya River in Turkmenistan arrived at Guangzhou City through the Second West-East Gas Pipeline. This marks the introduction of Central Asian gas to China's energy-hungry Yangtze Delta and Pearl River Delta.

In 2012, our progress in gas exploration on the Right Bank of Amu Darya included major discoveries from risk exploration in Ji Sal mountain front in the eastern area, and high-yield oil and gas flows from well Shi-21 and several other wells in the central area. In 2012, the gas project delivered 5.5 billion cubic meters of commercial gas to the Central Asia-China Gas Pipeline. Since the Phase-I project became operational in 2009, no accidents have been reported and the lost time injury frequency rate (LTIFR) was zero for 95.75 million person-hours.

In 2013, the Amu Darya Project saw smooth operation, with a full-year gas output of 5.98 billion cubic meters. In addition, a new natural gas deal was closed with Turkmengaz State Concern to secure an additional 25bcm/a gas supply.

In 2014, high-yield gas flows were obtained from geological structures in the eastern part of Amu Darya. The Amu Darya project had an output of more than 30 billion cubic meters of natural gas since its launch in 2009. It was also recognized as CNPC's "Safe Work of Excellence" for the sixth consecutive year due to its 150 million safe working-hours.

In 2015, we focused on the preliminary prospecting at the eastern piedmont zone on the Right Bank of Amu-Darya. Natural gas flows of more than 1 million cubic meters per day were obtained from well testing in each of the two formations of the Joramergen structure. Testing of exploration wells in the Gokmiyar structure showed good results in Upper Jurassic limestone and Jurassic and Lower Jurassic sandstone. Appraisal wells in the Agayry structure further proved gas reserves, leading to the formation of two gas zones with the reserves of 100 billion cubic meters for each, one being Hojakashmir-Gokmiyar in the south, and the other being Agayry-Tagara in the north.

In 2016, two new gas reservoirs were discovered at the Amu Darya project. CNPC Amu Darya Company sped up the construction of production facilities in new gas fields. The Phase III project at Block B proceeded smoothly with a daily gas processing capacity of 21 million cubic meters.

Gumdak Oilfield

Gumdak Oilfield lies in western Turkmenistan. In January 2002, CNPC signed an EOR contract for the field with Turkmenneft and acquired a 100% stake for five years. After CNPC took over the oilfield, an in-depth geological research and development effect appraisal was conducted to draw up corresponding stimulation programs and countermeasures, resulting in an increase in crude production in less than half a year.

CNPC mainly provides well drilling and logging services in Turkmenistan. In April 2007, CNPC signed a service contract for drilling 12 natural gas wells within three years for the Turkmenistan National Geology Company.

In May 2008, well Ula-15 was drilled and completed. During the drilling operation, we successfully penetrated the HTHP and high sulfur content salt bed by solving the problems of necking and drill pipe sticking in plastic formations, and low penetration speed in anhydrite and limestone formations.

CNPC repaired and rejuvenated seven of the 32 mature wells in Samandepe gas field, which is located in Block A of Amu Darya Natural Gas Project. We also initiated drilling of 13 new wells (completing six of them).

In 2013, Chuanqing Drilling Engineering Company completed a 10bcm/a gas project at Galkynysh gas field in Turkmenistan. The on-schedule completion of this project was due to its construction being organized in a scientific and reasonable way, as well as gas purification and processing techniques of CNPC's independent intellectual property rights, such as MDEA-based desulfuration and decarbonization, and rectification-column-based processing of gas condensate. The company worked safely, experiencing no accidents or environmental pollution for more than 100 million working hours. In 2014, the 10bcm/a commercial gas capacity building project became operational as scheduled.

In September 2013, CNPC and Turkmengaz State Concern signed a new EPC contract to build a 30bcm/a gas production capacity at Galkynysh gas field, which is due to be completed by the end of 2018.

No.1 Gas Processing Plant of Amu Darya Project

The No.1 Gas Processing Plant of the Amu Darya natural gas project, located in Bagtyiarlyk contract area on the right bank of the Amu Darya, commenced the construction in June 2008, and became operational in December of 2009. The gas processing plant,capable of processing 5 billion cubic meters, becomes the largest one in Central Asia. In 2011, the EPC of the private station of Bagtyiarlyk Contract Block was smoothly completed. In 2013, the capacity expansion project of its No.1 Gas Processing Plant became operational.

No. 2 Gas Processing Plant of Amu Darya Project

Located close to the No. 1 plant, the No. 2 Gas Processing Plant was kicked off on December 13, 2011 and put into operation on May 7, 2014, with an annual capacity of 9 billion cubic meters. Sophisticated equipment and state-of-the-art technologies were applied in the project, enabling monitoring of the CCR of the No. 1 Gas Processing Plant 600km away through the CNPC global video conference system. Despite the tight schedule, heavy workload, harsh desert conditions and other unforeseen difficulties, the plant was completed as planned, registering a total of 133.86 million accident-free man-hours, the best work safety record in CNPC's overseas projects.

CNPC (Turkmenistan) Amu Darya River Gas Company is the E&P operator and processing contractor in the Bagtyiarlyk contract area, and takes the charge of building the No. 1 and No. 2 Gas Processing Plants in Block A and Block B, respectively. At present, the two plants are capable of processing more than 15 billion cubic meters of natural gas per year, and the processed gas will be delivered to the Central Asia-China Gas Pipeline. In 2015, the 8bcm/a renovation and upgrading project in Block A of Amu-Darya was completed and put into operation, and smooth progress was made in gathering and transportation works at Girsan, Bota, Tangiguyi, Uzyngyi, and Odjarly-Sandykly gas fields in Block B of Amu-Darya.

Firefighting in Turkmenistan

On October 28, 2006, an enormous blowout and fire occurred at well Osman-3 in Turkmenistan. The well is located in the desert hinterland southeast of the Amu Darya basin. Following Turkmenistan's emergency request for help in early November, CNPC immediately sent out an experienced firefighting crew.

The condition in Well Osman-3 was quite severe, with hydrogen sulfide concentration up to 34.5g per cubic meter. The lack of sufficient logistic support made the rescue and firefighting operation terribly difficult. By adopting an unconventional operation, our firefighting crew removed the damaged wellhead and lifted a new one. Finally they succeeded in controlling the blowout and putting out the fire in close cooperation with Turkmenistan and US rescue teams.

Helping Improve Local Livelihood

Mekan gengeshlik is a village near the Bagtyiarlyk Contract Area in the desert hinterland, where about 6,000 villagers were once plagued by drought and lack of sanitary drinking water. In view of this situation, Amu Darya River Gas Company invested approximately USD 4 million in building a water treatment plant since April 2013. This is CNPC's largest single public welfare project in Central Asia. In May 2014, President Gurbanguly Berdimuhamedov cut the ribbon for the project via a remote video ceremony, marking the operation of the first modern water purification plant in the village.

Through filtration, electrolysis disinfection and ultraviolet disinfection, the plant delivers 1,500 cubic meters of quality domestic water to the local residents every day. To meet higher standards of barreled water and bottled water for direct drinking, a skid-mounted reverse osmosis unit is equipped at the plant, producing at a rate of 5 cubic meters per hour.

The water purification plant can effectively improve the drinking water conditions and living standard of local residents. It was selected as a demonstration project under the 10-year program for construction of residential drinking water system in Lebap Welayaty.

In addition, since the inception of the Amu Darya natural gas project, Amu Darya River Gas Company has invested more than USD 3 million in improving local environment and public welfare endeavors in culture, education, health care, and care for the disabled, etc.

In 2015, we assisted the construction of two drinking water treatment plants in Ahal Province, which has improved the water quality and health of local residents.

Training local people and local employees

The Turkmenistan project of CPECC (a wholly owned subsidiary of CNPC) has 1,470 local employees, 70% of the total staff. The project company provided 2,209 person/times of training course to its employees and cooperated with local schools to train more than 600 local people in 2010. The company also held five training sessions for its partner Turkmenneftegasstroy State Concern and trained 120 welders, 39 of whom passed the operational skills test organized by the project supervision company in accordance with China's national welding testing rules.

Local employees said, "It is a pleasure to be trained here, work here and we have learnt a lot." "I really value my work today and my biggest hope is that I can work in CPECC for a long time, because working here itself is a kind of wealth."

In 2012, a Surface Engineering Skills Training Center was established to provide training courses on welding, oxy-fuel cutting and engineering machinery etc. The training center has trained 3,850 local employees since 2010. Most of these trainees have become skilled workers, with some standing out as technical managers.

Our training center trained more than 1,400 local technicians covering over 10 fields of work over the past two years, and helped them improve their professional skills.

In 2014, the Amu Darya Project made significant headway in training local management staff, experts and technicians. As the No. 2 Gas Processing Plant went on stream in 2014, 55 local employees were appointed to posts previously held by their Chinese colleagues.

In 2016, the Amu Darya project created 22,000 jobs and invested over USD 3 million in public welfare undertakings.

Eager to Learn

Muratgeldi Ayrasovich is a Turkmen employee of CNPC International (Turkmenistan) engaged in management work. He has loved Chinese culture since he was very young and always looked forward to having further education in China. To realize this dream, he applied for a job with CNPC International (Turkmenistan) after graduation and was recruited. There he met a lot of Chinese colleagues and friends and learnt more about China, which again ignited his dream to study in China.

In 2013, the company provided an opportunity for him and nine other colleagues to study at China University of Petroleum (Beijing), where they took a 185-day training course on Chinese language and professional skills. Now he can read and write Chinese fluently, and communicate with his Chinese friends. Although he has completed his study tour, he will not stop learning. He believes that he can learn more and give full play to his potential in the future.

Sept. 14 2015 Bota, Tangiguyi and Uzyngyi gas fields of Amu Darya Project became operational, with an annual capacity of 1 billion cubic meters.

May 7 2014 The No.2 Gas Processing Plant of the Amu Darya project in Turkmenistan became operational.

Sept. 3, 2013 CNPC and Turkmengaz inked an EPC contract on 30bcm/a gas production capacity building in Galkynysh Gas Field, and an additional 25bcm/a gas sales & purchase agreement.

Sept. 23 2012 Zhou Yongkang, Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Secretary of the Central Political and Legislative Affairs Committee, visited CNPC affiliates in Turkmenistan.

Jun. 6 2012 A cooperation agreement was signed with Turkmengaz State Concern, to increase gas supply from Turkmenistan to China via the Central Asia-China Gas Pipeline.

Dec. 13, 2011 Ground breaking ceremony for No.2 Gas Processing Plant of the Amu Darya project was held in Turkmenistan, with a designed capacity of 8 billion cubic meters per year.

Jun. 30, 2011 Natural gas coming from the Right Bank of Amu-Darya River in Turkmenistan arrived at Guangzhou City through the Second West-East Gas Pipeline.

Dec. 14, 2009 Central Asia-China Gas Pipeline became operational.

Dec. 2009 The First Gas Processing Plant of the Amu Darya natural gas project became operational.

Aug. 29, 2008 A framework agreement is signed with Turkmengazi State Concern on expanding cooperation in the natural gas sector, while a technical agreement supplementary to the natural gas purchase and sale agreement is also signed between CNPC and Turkmengazi State Concern.

Jun. 27, 2008 The foundations are laid of the First Gas Processing Plant of the Amu Darya natural gas project. Located in Bagtyiarlyk contract area on the right bank of the Amu Darya in Turkmenistan, the project is expected to become operational by the end of 2009.

Jul. 17, 2007 CNPC signed a production sharing contract and a natural gas sale-and-purchase agreement with Turkmen State Agency for Management and Use of Hydrocarbon Resources and Turkmengaz State Concern respectively.

Apr. 2006 CNPC reached into a basic agreement on a joint natural gas project with the Ministry of Oil and Gas Industry and Mineral Resources of Turkmenistan.

Jan. 2002 CNPC signed an EOR contract for Gumdak Oilfield with Turkmenneft State Concern and acquired a 100% stake of the field for five years.