Wool for Kukmor Valenki and wells for Tatneft — how Tatarstan benefits from trade with Turkmenistan

Bringing the maximum average daily oil growth to 150 tonnes a day

The first topic on the agenda was the oil and gas industry. To a greater extent, the cooperation of the republics in the field of mining and processing of minerals is based on the relationship between two giants — Tatneft PJSC and Turkmenneft state concern. From 2010 to 2017, the Tatarstan company provided Turkmenneft with services to improve oil recovery in the south-eastern section of the oil field No. 4 of Goturdepe NGDU — mainly major repairs and equipment installation. The result of the seven-year contract worth $32 million was bringing the maximum average daily oil growth to 150 tonnes a day and the production of additional 190,000 tonnes of black gold.

In December 2018, the companies signed a new additional agreement No. 8, and Tatneft resumed work on increasing oil recovery, expanding to the fourth and fifth fields of Goturdepe NGDU. During the meeting, the representatives of Tatneft announced three main proposals to the Turkmen colleagues: to sign a contract and continue to work on the creation of the geological and hydrological model of Goturdepe field, to create a joint production for the repair of tubing, reducers of pumping unit gears “on a mutually beneficial basis”, as well as to conclude a service agreement No. 9. Thus, Tatneft wants to expand the service area of Turkmenneft to all Goturdepe fields.

“In case of further expansion to all fields of Goturdepe with the signing of the additional agreement No. 9, investments will amount to more than $200 million, and more than 400 citizens of Turkmenistan will be employed in the branch,” explained deputy head of the department for oil and gas projects outside the Republic of Tatarstan at Tatneft Rafael Afletonov.

“Tatarstan occupies a special place in the foreign economic activity of the concern. We see you as an important and reliable partner, we are deeply impressed by your initiative and the readiness of the Russian business community to establish closer cooperation with the concern,” deputy chairman of Turkmenneft state concern Orazmyrat Kurenov said in his turn.

Kuranov reminded that in addition to the contract with Tatneft, Turkmenneft has also signed the agreement with Tatarstan KER-holding of Khamis Makhyanov on the overhaul of gas turbines. He did not comment on Tatneft's proposals but added that he would be glad to see Tatarstan colleagues in Ashgabat at the 24th International exhibition Oil and Gas of Turkmenistan in October 2019.

A trading house for Turkmen yarn on the areas of Melita in Kazan

Earlier, on May 23, Deputy Minister of Industry and Trade of the Republic of Tatarstan Ildar Mingaleev for the first time in recent years had the opportunity to thrash out possible purchases and mutual areas of interest with the Turkmen side. The closed meeting with Deputy Minister of Textiles of Turkmenistan Vepamukhammet Shykhgulyev brought a variety of perspectives, he said at the meeting.

“We have come to the necessity and possibility of considering the opening of a trading house in the Republic of Tatarstan with a logistics warehouse for some types of goods that you are ready to export here. It is yarn, degreased wool, filament, fabric — all that can be in stock and every day can be in demand to our enterprises, manufacturers. Vepamukhammet Shykhgulyev and I have agreed that, after returning to Turkmenistan, he will work through these questions and provide a commercial offer,” Mingaleev addressed to Minister of Finance and Economy of Turkmenistan Batyr Bazarov.

According to Mingaleev, the lease areas of the Kazan enterprise Melita, specializing in the processing of skins and sewing products from various furs, are being considered as the site of the future trading house. In addition to Melita, the delegation of Turkmenistan visited the textile production facility of Kvint. Ildar Mingaleev suggested Turkmen colleagues thinking about the possibilities of deliveries here of natural fibers and the purchase of technical twilled tape, which is not produced in Turkmenistan today.

“Today we provide a visit to Kukmor felting plant. It is about to consider the possibility of supplying washed wool from Turkmenistan. They (the factory) take it in Kazakhstan, Uzbekistan, but Turkmenistan is not offering washed wool so far, but this issue can be solved if there is an order, they (the plant) consume this in great quantities,” Mingaleev explained to Vepamukhammet Shykhgulyev.

The parties are planning to prepare the relevant documents within two months, the deputy minister of industry and trade of Tatarstan reported.

Giving impetus

Kazancompressormash is a long-time partner of the state companies of Turkmenistan. GMS Group, which includes the Kazan enterprise, is participating in a large number of tenders, including the supply of equipment for the concerns Turkmengaz and Turkmenneft. GMS is also working on the technical development of proposals for the modernization of Maryiskaya GRES. The already signed contract worth about $800,000 between Kazancompressormash and Turkmenhimiya for the supply of multiplying gears to Turkmenistan is being at the stage of approval by the government of Turkmenistan.

“To give impetus and intensify cooperation, we, as an organisation that can provide technical solutions, would like to be involved in the discussion of projects at the very early stage as soon as possible. That is, not at the tender stage, and when it is under technical study. Because in most cases, when a tender has already been announced, we see that if we had joined earlier, we could have been more effective. This is one of the proposals that I would like to include in the protocol,” said deputy managing director of Kazancompressormash Yury Oleynik.

In addition, the representative of the Kazan machine-building enterprise asked the Turkmen side to pay more attention to the “feedback” as the contract goes through the approval procedures “because at some point we do not quite understand what we can plan and in what period of time,” he concluded.

TNV goes to Turkmenistan?

“The economy is the most important component, but other areas also unite us with Turkmenistan,” Plenipotentiary Representative of the Republic of Tatarstan to Turkmenistan Ruslan Kabirov took the floor. “The cooperation in other sectors, such as culture, science and technology, and sports education, has great momentum and opportunities today.”

The plenipotentiary recalled the April visit of Tatarstan President Rustam Minnikhanov to Turkmenistan, who in April this year was invited by the head of the republic, Gurbanguly Berdymuhamedov, to attend the national Turkmen holiday Akhal-Teke Horse Day.

“I am very pleased that this year for the first time there has been a meeting with our compatriots — the Tatars living in Turkmenistan. They had the opportunity to talk about their lives and designate some issues. In particular, the issue of broadcasting of TNV, Shayan TV channels on the territory of Turkmenistan was highlighted. This issue was discussed at the level of presidents, too,” Kabirov said, adding that he cherishes high hopes for a “positive solution to the issue”.