XRG, a subsidiary of Abu Dhabi National Oil Company (ADNOC), Petronas and the Turkmenistan State Enterprise Hazarnebit have signed a new Production Sharing Contract (PSC) with the State Concern Turkmennebit for the offshore Block I gas and condensate fields in Turkmenistan.
Under the terms of the PSC, Petronas will hold 57% participating interest as owner and operator, partnering with XRG with 38%, and the Turkmenistan State Enterprise Hazarnebit holding the remaining 5%.
As part of the transaction, XRG and PETRONAS signed a long-term Gas Sales Agreement (GSA) with State Concern Turkmengas.
Located in the Caspian Sea, Block I currently produces approximately 400 million cubic feet of natural gas per day.
It offers significant long-term potential, with access to over 7 trillion cubic feet of natural gas resources and future opportunities for production capacity expansion.
The collaboration will help to ensure energy supply stability while delivering sustainable growth and economic value, amid rising regional and global demand for natural gas.
"This agreement marks an important milestone in XRG’s global growth strategy and builds on the strengthening relationship 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.
“By deepening our partnership with Petronas, Hazarnebit, Turkmennebit, and Turkmengas, we are advancing energy security and economic development, while creating long-term value for all stakeholders,” said Mohamed Al Aryani, President, International Gas, XRG.
“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,” added Mohd Jukris Abdul Wahab, Executive Vice President and CEO Upstream Petronas.
