
Balkanabat lies at the foot of the Balkan Daglary mountain range. Balkanabat is about 450 km west of Ashgabat and 160 km east of the port city of Turkmenbashi.
The town was founded in 1933 as "Neftedag", meaning "Oil Mountain", as a settlement along one of the stations of Trans-Caspian Railway. In 1946, when it was transformed into a city, it was renamed "Nebit-Dag".
A large monument in the far eastern end "Monument to the Desert Explorers" depicts a camel, Ivan Gubkin and peers, struggling to walk through the windy desert of Karakum while exploring petroleum. Nebit Dag was renamed to Balkanabat in 2001.