President Saparmurat Niyazov signed a decree that envisages CNPC's participation in the exploration and development of the southeastern Iolotan field, which was discovered earlier this month, Niyazov's press service said in a statement. Niyazov claimed the field contained an estimated 7 trillion cubic meters of natural gas, adding to the Central Asian state's proven commercial reserves of 2.8 trillion cubic meters. Within the next three years, CNPC would drill 12 wells up to 5,000 meters (16,400 feet) deep for gas worth a total of U.S.$152 million (euro119 million), excluding valued added tax, the statement said without specifying the amount of the VAT. Turkmenistan possesses the second-biggest gas reserves among all ex-Soviet republics, after Russia, and its resources are playing an increasingly important role in regional geopolitics. In April, Turkmenistan concluded an agreement to build a gas pipeline to China. Currently Russia's state gas giant Gazprom controls the only transit route for Turkmen gas exports. The agreement with Turkmenistan was the latest in the series of multibillion-dollar (multibillion-euro) deals concluded by energy-hungry China. Neighboring Kazakhstan launched a pipeline to deliver oil to China in December. In March, Russia announced it would build another pipeline to transport gas to China and affirmed its commitment to building an oil pipeline. PIN/AP