Malaysian multinational oil and gas company Petronas has signed a new Production Sharing Contract (PSC) alongside UAE-based XRG, State Enterprise Hazarnebit, and State Concern Turkmennebit for the development of the Block I gas and condensate fields 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, Petronas will serve as the operator with a 57% participating interest, XRG, will hold 38%, while Hazarnebit, a Turkmen state enterprise, will retain the remaining 5%.
Block I currently produces around 400mn cubic feet of natural gas per day and holds significant long-term potential, with access to over 7 trillion cubic feet of gas resources. The new agreement supports Turkmenistan’s goals to enhance energy supply security and diversify its export markets in response to increasing regional and 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,” Petronas Executive Vice President and CEO of Upstream, Mohd Jukris Abdul Wahab said.
XRG’s President for International Gas, Mohamed Al Aryani, also emphasized the strategic nature of the agreement:
“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 currently oversees the Block I concession, along with the Gas Treatment Plant and Onshore Gas Terminal (GTPOGT) in Kiyanly.
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