Malaysian oil and gas giant Petronas has signed a new Production Sharing Contract (PSC) in partnership with UAE-based XRG, State Enterprise Hazarnebit, and State Concern Turkmennebit for the continued development of Block I, a major gas and condensate field located in Turkmenistan’s sector of the Caspian Sea. The agreement also includes a long-term Gas Sales Agreement (GSA) with State Concern Turkmengas.
Under the terms of the PSC:
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Petronas will serve as operator with a 57% interest
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XRG will hold 38%
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Hazarnebit, a Turkmen state enterprise, will retain 5%
Block I is currently producing approximately 400 million cubic feet of natural gas per day and holds significant long-term potential, with access to more than 7 trillion cubic feet of recoverable gas resources. This agreement supports Turkmenistan’s broader energy strategy to bolster supply security and diversify export markets, in response to growing global demand for natural gas.
“As the first international operator in Turkmenistan’s energy sector nearly three decades ago, this milestone reinforces our presence and signifies our continued expansion in the upstream sector. We are privileged to contribute to the ongoing advancement of the nation’s energy industry and remain committed to fostering long-term partnerships,”
said Mohd Jukris Abdul Wahab, Executive Vice President and CEO of Upstream at Petronas.
XRG’s President for International Gas, Mohamed Al Aryani, added:
“This agreement marks an important milestone in XRG’s global growth strategy and builds on the strengthening relationship between the UAE and Turkmenistan. It expands our footprint in the Caspian region and advances our goal to be a reliable supplier of cleaner energy while contributing to regional energy security.”
Petronas has operated in Turkmenistan since 1996 and continues to oversee the Block I concession, as well as the Gas Treatment Plant and Onshore Gas Terminal (GTPOGT) in Kiyanly.