Turkmengaz, Turkmenneft sign agreements with Malaysian, UAE companies for Caspian field development
ASHGABAT. May 15 (Interfax) - Turkmen President Serdar Berdimuhamedov signed documents on May 14 authorizing the state corporations Turkmengaz and Turkmenneft to conclude contracts with Petronas (Turkmenistan) Carigali Sdn. Bhd. (Malaysia) and ADNOC Turkmenistan RSC Limited (UAE), the Neutral Turkmenistan newspaper reported on Thursday.
The same day saw an international meeting in Ashgabat with participation of Turkmenistan's energy sector leaders and representatives from UAE energy authorities and the Malaysian company Petronas.
The meeting resulted in agreements being signed between Turkmenneft, Petronas Carigali (Turkmenistan) Sdn Bhd and ADNOC Turkmenistan RSC Limited, as well as between the state corporation Turkmengaz, Petronas Carigali (Turkmenistan) Sdn Bhd and ADNOC Turkmenistan RSC Limited (UAE).
According to Turkmenportal, the agreement signed by Turkmengaz with Petronas and ADNOC provides for joint development of new hydrocarbon fields in Turkmenistan's Caspian sector, Turkmengaz Chairman Maksat Babayev said at a press conference.
Turkmenneft Chairman Guvanch Agadzhanov said at the press conference that his corporation's agreement with Petronas and ADNOC aims to develop additional oil fields in Turkmenistan's Caspian sector.
According to a press release published on Petronas's website, a production sharing agreement was signed with Turkmenneft for gas and condensate fields in offshore Block 1 of Turkmenistan. Under the agreement terms, Petronas will hold a 57% participating interest as operator, partnering with ADNOC-XRG (38%), while the state enterprise Hazarneft (a Turkmenneft subsidiary) will hold the remaining 5%.
A long-term gas sales agreement was also signed with state corporation Turkmengaz, Petronas said.
According to News Central Asia, Malaysian company Petronas has been developing Block 1 in Turkmenistan's Caspian sector under a production sharing agreement (PSA) since 1996. The documents signed on May 14, 2025, transform this PSA into a consortium, with XRG joining as investment partner.
The agreements will remain effective for 25 years and include joint development of several new fields in addition to the PSA territory.
Current gas production at Block 1 stands at 400 million cubic feet per day (approximately 4.1 billion cubic meters annually). Gas reserves in Block 1's PSA area are estimated at 7 trillion cubic feet (nearly 200 billion cubic meters).
ADNOC's international investment division XRG was established in November 2024 and commenced operations in Q1 2025, having made several investment decisions focused on its strategic platforms - global chemicals, international gas and low-carbon energy, News Central Asia said.
