State Concern "Turkmennebit": Turkmen Sector of the Caspian Offers Investors Flexible Contracts and Tax Incentives
At the opening session of the Turkmenistan Investment Forum (TIF 2026)—focused on ensuring energy sustainability and developing the chemical, oil, and gas industries—Batyr Jumayev, Deputy Chairman of the State Concern "Turkmennebit," detailed the investment potential of developing hydrocarbon resources in the Turkmen sector of the Caspian Sea. He emphasized that the country's offshore shelf is divided into more than 30 license blocks open to foreign capital as part of the national strategy for developing the oil and gas sector.
The legal protection and financial appeal for investors are underpinned by the Law of Turkmenistan "On Hydrocarbon Resources," which guarantees a preferential fiscal regime. Foreign partners benefit from transparent operational mechanisms: the country employs a simplified taxation system requiring payment only of corporate income tax and specific subsoil usage fees, while granting full exemption from other levies, customs duties, and exchange registration requirements for equipment import contracts.
Legislation also enshrines the right of investors to freely dispose of their share of extracted hydrocarbons and to process them at domestic refineries without additional licenses. Furthermore, submitting an official application to the State Concern "Turkmennebit" paves the way for direct, non-exclusive negotiations that may result in the signing of Production Sharing Agreements (PSAs), concessions, risk-service contracts, or joint venture agreements.
To date, international giants such as Dragon Oil, PETRONAS, and ADNOC have been successfully operating on Turkmenistan’s Caspian shelf under PSAs. A prime example of the expansion of strategic partnerships was the signing in June 2026 of a Production Sharing Agreement for the "Block 19" and "Block 20" contract areas between the State Concern "Turkmennebit," Petronas Çarigali (Türkmenistan) Sdn. Bhd., and the state-owned enterprise "Khazarnebit." Alongside the commencement of 2D seismic surveys on licensed Blocks 11, 12, 13, and 14, this deal marked a new stage in boosting offshore exploration capacity and reaffirmed the high effectiveness of the state's "open-door" policy.
