Turkmenistan's Performance on the Resource Governance Index
Turkmenistan received a "failing" score of 5, ranking 57th out of 58 countries. It performed extremely poorly on all components, particularly on Safeguards & Quality Controls, where Turkmenistan earned the RGI's only score of zero.
(out of 58)
(out of 100)
|56||Institutional & Legal Setting||12|
|58||Safeguards & Quality Controls||0|
Institutional & Legal Setting (Rank: 56th/58, Score: 12/100) learn more
Turkmenistan's "failing" score of 12 reflects the lack of a detailed legal framework regulating the petroleum sector.
The oil and gas industries are governed by the 2008 Law on Hydrocarbons, which is publicly available but states only general principles and does not include fiscal terms. Rather than promoting transparency, the law prohibits government agencies from disclosing information about the hydrocarbons sector.
The State Agency for the Management and Use of Hydrocarbon Resources, which is accountable only to Turkmenistan's president, grants licenses and awards production sharing agreements for offshore development through an opaque process of direct negotiation that favors non-Western companies. The agency regulates all foreign oil and gas companies, while the Oil and Gas Ministry manages state-owned companies. Environmental impact assessments are not required.
Turkmengaz and Turkmenneft, the national gas and oil companies, respectively, collect most resource revenues. However, an estimated 80 percent of export sales are not reported and the proceeds bypass the treasury.
Reporting Practices (Rank: 58th/58, Score: 4/100) learn more
Turkmenistan ranked last with a score of 4, the product of a near-total lack of government data on the oil and gas industries.
No information is published about the licensing process, before or after negotiations, and contracts remain confidential. No government agency publishes information on hydrocarbon revenues. The only available industry information is an outdated list issued by the Oil and Gas Ministry of companies operating in the country and their production.
Safeguards & Quality Controls (Rank: 58th/58, Score: 0/100) learn more
With no effective public oversight of the extractive sector, Turkmenistan earned a "failing" score of 0.
The State Agency for the Management and Use of Hydrocarbon Resources, controlled by the president, has unlimited power in the licensing process and receives no oversight from the legislature, which is itself controlled by the executive branch. There are no procedures for appealing licensing decisions.
There is no legal requirement that natural resource revenues be audited. The president sometimes directs the national audit authority to examine resource revenues, but the results are not made public.
Enabling Environment (Rank: 57th/58, Score: 3/100) learn more
Turkmenistan scored poorly on all measures of the Enabling Environment, earning a "failing" score of 3.
State-Owned Companies (Rank: 45th/45, Score: 0/100) learn more
Turkmengaz and Turkmenneft are owned entirely by the government. No information is available on their operations or revenues. Turkmengaz sometimes conducts internal audits, but they are not required by law. Company officials are not required to disclose their financial interests in extractive projects.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||3.7||9.2||28.1|
|GDP per capita, PPP (constant 2005 international $)||3,917||4,762||8,319|
|Extractive exports (% total exports)||81||..||..|
|Source: World Bank.|