RWE
www.rwe.com
Contact Information
Opernplatz 1
45128 Essen
Germany
T: +49(0)201/12-00
History in Turkmenistan
In February 2008, RWE became the final shareholder in Nabucco Gas Pipeline International GmbH, the owner and operator of the Nabucco Gas pipeline. Like its fellow shareholders, OMV (Austria), MOL (Hungary), Transgaz (Romania), Bulgarian Energy Holding (Bulgaria), and BOTAS (Turkey), RWE holds a 16.7% stake in the company.[i] Later that year, RWE and OMV created the Caspian Energy Company Ltd. to explore options for piping gas from the Caspian’s eastern shore to Europe.[ii] The Nabucco Gas Pipeline project ultimarly failed in June 2013, after Gazporm allegedly pressured countries within the proposed corrdior, namely Bulgaria, Romania, and Hungry, into dropping poltical support. These three countries are heavily reliant on gas supplied by Gazprom.[iii]
In April 2009, RWE and the Government of Turkmenistan signed a Memorandum on Long-term Cooperation stipulating that RWE will explore and develop offshore natural gas resources, and work with Turkmenistan to explore transport routes for delivering natural gas to Germany and Europe.[iv] In July 2009, RWE and the Government of Turkmenistan signed a Production Sharing Agreement granting the company exploration rights for offshore block 23, which measures approximately 940 square kilometers.[v] The initial PSA wais a six-year agreement, after which time RWE was to be granted a 25-year production license, if natural gas reserves are found.[vi] In October 2009, RWE Dea opened a branch office in Turkmenistan and was reported to be conducting environmental and 3D seismic studies in preparation for drilling operations.[vii] The head of the new office stated that RWE planned to spend $60-80 million on the exploration of block 23 over a four-year period.[viii] In April 2012, RWE began a 3D seismic study of block 23.[ix] The company plans to drill an exploration well in 2013.
RWE was a gold sponsor of the 2010 Turkmenistan International Oil and Gas Conference, and is the sole gold sponsor of the next Turkmenistan Gas Conference, planned for May 2011.
Current Scope of Operations
According to a 2015 post by Alternative Turkmenistan News (ATN), RWE’s subsidiary (DEA AG) relinquished its natural gas concessions in Turkmenistan over frustration with Turkmenistani corruption and bureaucracy. ATN alleges that the Turkmenistani government stalled giving out production licenses to RWE, two years after the company had completed preparatory work within Block 23. Further, disputes with Turkmenistani customs kept the companies equipment in lockdown for extended periods of time, costing the company roughly $30,000 in port fees.[x]
Interestingly, the 2018 US State Department’s report on Investment Climate Statements in Turkmenistan [xi] states that RWE is still active within Block 23 of Turkmenistan.
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[i] RWE AG, Nabucco Gas Pipeline Project, http://www.rwe.com/web/cms/en/257318/rwe/press-news/archive/special-nabucco/nabucco-gas-pipeline-project/. Original weblink no longer active.
[ii] RWE AG, “Press Release: RWE and OMV to jointly own ‘Caspian Energy Company Ltd,’” December 22, 2008, http://www.rwe.com/web/cms/mediablob/en/255610/data/253226/3/rwe/press-news/archive/special-nabucco/project-timeline-next-steps/EN-22-12-08-RWE-und-OMV-gruenden-Caspian-Energy-Company-Ltd.pdf. Original weblink no longer active.
[iii] Palti-Guzman, Leslie. Reuters, “https://www.reuters.com/article/idUS232853865520140501,” May 1, 2014. Accessed February 17, 2022.
[iv] RWE AG, “Press release: RWE enters into energy partnership with Turkmenistan,” April 16, 2009, http://www.rwe.com/web/cms/mediablob/en/255614/data/253226/3/rwe/press-news/archive/special-nabucco/project-timeline-next-steps/EN-Turkmenistan-Partnership-160409.pdf. Original weblink no longer active.
[v] Times of Central Asia (2010).
[vi]Trading Markets (2009).
[vii] Times of Central Asia, (2010).
[viii] Energy-pedia (21 Apr. 2010).
[ix] RWE, “Operations: Turkmenistan,” RWE, http://www.rwe.com/web/cms/en/328030/rwe-dea/operations-worldwide/operations/turkmenistan/. Original weblink no longer active.
[x] Алтернативные Новости Туркменистана, “Немецкий концерн RWE Dea покидает Туркменистан,” August 15, 2015, https://habartm.org/archives/3792. Accessed December 7, 2021.
[xi] US State Department, “2018 Investment Climate Statements: Turkmenistan,” https://www.state.gov/reports/2018-investment-climate-statements/turkmenistan/. Accessed December 7, 2021.