PETROLIAM Nasional Bhd (Petronas) has strengthened its long-standing presence in Turkmenistan’s upstream energy sector by signing a new production sharing contract (PSC) for the gas and condensate-rich Block I concession in the Caspian Sea, alongside partners XRG, state enterprise Hazarnebit and state concern Turkmennebit.
The deal also includes a long-term gas sales agreement (GSA) with state concern Turkmengas, cementing the consortium’s commitment to support Turkmenistan’s energy security goals and its ambitions to diversify natural gas exports.
Under the new PSC terms, Petronas will retain operatorship with a 57% participating interest.
Its consortium partner, United Arab Emirates (UAE)-based XRG, will hold 38%, while Hazarnebit will take a 5% stake.
Block I, which currently yields approximately 400 million cu ft of natural gas per day, is estimated to contain over seven trillion cu ft of recoverable gas resources.
The block holds significant long-term development potential, with room for expanded production capacity to cater to rising regional and global demand.
Petronas executive VP and CEO of upstream Mohd Jukris Abdul Wahab said the agreement reaffirms the Malaysian energy giant’s enduring role in the country.
“As the first international operator in Turkmenistan’s energy sector close to 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 with XRG, Hazarnebit, Turkmennebit and Turkmengas,” he said.
XRG president of international gas Mohamed Al Aryani described the deal as “an important milestone” in the company’s global growth strategy, noting its align- ment with the deepening diplomatic and commercial ties between the UAE and Turkmenistan.
“It strengthens XRG’s presence in the Caspian region, expands our resource base and reflects our ambition to be a reliable supplier of cleaner energy to meet the world’s evolving needs,” he said.
“By deepening our partnership with Petronas, Turkmennebit and Turkmengas, we are advancing energy security and economic development, while creating long-term value for all stakeholders,” Al Aryani added.
Petronas first entered Turkmenistan in 1996 and has since operated Block I and the associated Gas Treatment Plant and Onshore Gas Terminal (GTPOGT) in Kiyanly.
The latest agreement underscores the group’s strategy of strengthening its international gas portfolio while supporting host countries in achieving their long-term energy transition and economic development objectives. — TMR
- This article first appeared in The Malaysian Reserve weekly print edition
The post Petronas expands gas portfolio in Turkmenistan appeared first on The Malaysian Reserve.
