Gazprom Thinks Strategically

Russian gas giant Gazprom’s plan to conduct exploratory work on two prospective oil and gas fields in Tajikistan is a huge economic risk, but one worth taking, say NBCentralAsia analysts.



Gazprom has been granted a licence to do exploratory work on the Sargazon field in the Dangarin region on southwest of the republic, and at the Rengan field near Dushanbe. Estimated natural gas reserves at Sargazon are 30 billion cubic metres and at Rengan 35 billion. It has also signed an agreement with the Tajik government to develop two other fields.



The ministry of economic development estimates Tajikistan’s total reserves of oil at 117 million tonnes and gas reserves at 857 billion cubic metres.



Exploiting these reserves is key for Tajikistan, which is currently forced to import 98 per cent of its oil and gas products. “By implementing these projects, Tajikistan can fully satisfy its demand for natural gas,” said Mirzosharifa Isomiddinov, who heads the committee on energy, industry, construction and communications in the lower house of parliament



But it’s a huge economic risk for Gazprom, which lacks precise data on the quantity of oil and gas in the Sargazon and Rengan fields. And to find out more is expensive. Gas recovery is a capital-intensive business, requiring well boring to a depth of about 5 kilometres.



Analysts, however, say that for Gazprom the risk is worth taking. “Despite huge expenses and risks connected to the development of these reserves in Tajikistan, Gazprom does not want to lose one more Central Asian republic from the sphere of its influence,” said an analyst from the ministry of economic development.



Isomiddinov agrees that Gazprom’s strategic interest in Tajikistan is strong, despite the costs involved in its exploratory projects. He suggests that others should also consider taking the risk. “There are several prospective oil and gas deposits in Tajikistan …[the development] should not be done only by Gazprom, other foreign companies should be also involved,” he said.



(News Briefing Central Asia draws comment and analysis from a broad range of political observers across the region)