India, whose rapid economic growth has brought with it a surging demand for fuel, is competing with Russia, China and the United States for control over the vast oil and gas reserves of Turkmenistan and neighboring Kazakhstan.
Today's agreement was signed after a meeting between Indian Vice-President Hamid Ansari and Turkmen Deputy Prime Minister for Oil and Gas Tachberdy Tagiyev.
A source in India's oil ministry told RIA Novosti: "This agreement will open the doors for Indian investment in Turkmenistan."
The deal foresees bilateral cooperation in production, processing, and transport of hydrocarbons, including the possible construction of a liquefied natural gas processing facility.
Ansari arrived in Ashgabat on Friday, and will travel to Kazakhstan on April 6.
The minister told reporters on Friday that India will seek to import hydrocarbons from "every source".
"We should be in a position to take advantage of the evolving situation," the Hindu newspaper quoted him as saying.
