Ashgabat: XRG, 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. As part of the transaction, XRG and PETRONAS signed a long-term Gas Sales Agreement (GSA) with State Concern Turkmengas.
According to Emirates News Agency, under the terms of the PSC, PETRONAS will hold a 57 percent participating interest as owner and operator, partnering with XRG, which holds a 38 percent interest, and the Turkmenistan State Enterprise Hazarnebit, holding the remaining 5 percent. 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. Mohamed Al Aryani, President, International Gas, XRG, stated that this agreement is an important milestone in XRG's global growth strategy and strengthens the company's presence in the Caspian region. He emphasized the ambition to be a reliable supplier of cleaner energy and the importance of advancing energy security and economic development.
M Jukris Abdul Wahab, Executive Vice President and CEO Upstream PETRONAS, expressed that the milestone reinforces PETRONAS's presence in Turkmenistan's energy sector and signifies continued expansion in the Upstream sector. He highlighted the commitment to fostering long-term partnerships with XRG, Hazarnebit, Turkmennebit, and Turkmengas.
With this acquisition, XRG advances its strategy to build a diversified, transformative international energy investment company centered around three strategic pillars: gas, chemicals, and low-carbon energy solutions. The transaction expands XRG's footprint in Central Asia and reinforces its focus on delivering long-term impact globally.