A new Production Sharing Agreement (PSA) for the gas condensate fields in Block I of Turkmenistan, along with a long-term gas supply agreement, was signed in Ashgabat, according to Orient.tm. The agreements were concluded during an international meeting attended by senior officials from Turkmenistan's fuel and energy sector and representatives of leading foreign companies.
The agreements were signed by Malaysia’s PETRONAS, XRG—the investment arm of Abu Dhabi National Oil Company (ADNOC), Turkmenistan’s state enterprise Hazarnebit, and the state-owned corporations Turkmennebit and Turkmengaz. The presence of Gurbanguly Berdimuhamedov, National Leader of the Turkmen People and Chairman of the Halk Maslahaty (People’s Council) of Turkmenistan, underscored the strategic importance of the event.
According to a PETRONAS press release, under the terms of the new PSA for Block I (located in the Caspian Sea), PETRONAS will act as the operator with a 57% stake. Its partner XRG will hold a 38% share, while the remaining 5% belongs to the state-owned enterprise Hazarnebit.
In addition, a long-term gas supply agreement was signed directly with the state concern Turkmengaz.
PETRONAS stated that Block I currently produces approximately 400 million cubic feet of natural gas per day and holds substantial long-term potential, with access to over 7 trillion cubic feet of natural gas resources. The block also offers future opportunities for capacity expansion.
These agreements aim to support Turkmenistan’s efforts to ensure energy supply stability and diversify export routes, while contributing to sustainable growth and economic value creation for all parties amid rising regional and global demand for natural gas.
PETRONAS Executive Vice President and CEO of Upstream, Mohd Jukris Abdul Wahab, called the signing a significant milestone that strengthens the company’s presence in Turkmenistan, where PETRONAS has been the first international operator for nearly three decades. He reaffirmed the company’s commitment to developing the country’s energy sector and fostering long-term partnerships.
Mohamed Al Aryani, President of XRG International Gas, emphasized that the agreement marks a major step in XRG’s global growth strategy, reflecting deepening ties between the UAE and Turkmenistan. He noted that this collaboration enhances XRG’s footprint in the Caspian region, expands its resource base, and demonstrates its commitment to being a reliable supplier of cleaner energy, supporting energy security and economic development.
According to TDH, the meeting highlighted Turkmenistan’s consistent development of international cooperation in the oil and gas industry. The government emphasized the importance of partnerships based on trust and mutual benefit, as well as the need to implement advanced technologies, innovative practices, and global expertise, including modern digital solutions. The business-oriented discussions underscored the potential for further expanding cooperation in the sector.
CentralasianLIGHT.org
May 15, 2025