Adnoc’s global investment subsidiary, XRG, has acquired a 38% share in an offshore natural gas condensate project in Turkmenistan from Malaysia’s Petronas.
Petronas, XRG, and the Turkmen state-owned entities Hazarnebit and Turkmennebit have entered into a new production sharing contract for Block 1 in the Caspian Sea, continuing its development under revised terms.
According to the agreement, Petronas will retain a 57% interest and continue operating the block, while Hazarnebit will hold a 5% stake. The transaction’s financial details were not made public.
Additionally, a new long-term gas sales contract has been signed with Turkmengaz, the country’s national gas company.
This initiative reflects Turkmenistan’s ongoing efforts to attract strategic partners to help commercialise its substantial natural gas reserves—ranked second largest in the former Soviet Union—and expand exports to global markets.
Petronas, which initially signed the production sharing contract in 1996, reported that Block 1 currently produces around 11.3 million cubic metres of gas daily.
The company highlighted that, despite over two decades of operation, the block still holds considerable potential, with access to over 200 billion cubic metres of gas and opportunities to increase output in future phases.
Mohamed Al Aryani, president of international gas at XRG, said the agreement represents a major step in the company’s global expansion strategy and underscores the deepening ties between the UAE and Turkmenistan.
