Adnoc's XRG takes 38% stake in Turkmenistan gas field with Malaysia's Petronas

Dubai: Abu Dhabi National Oil Company's international investment arm XRG acquired a 38% participating interest in Turkmenistan’s offshore gas and condensate fields, expanding its presence in Central Asia as part of a strategic partnership with Malaysia’s Petronas.

The agreement for “Block I” fields was formalised through a new production sharing contract (PSC) signed between XRG, Petronas, the Turkmenistan State Enterprise Hazarnebit, and Turkmenistan’s national oil company, Turkmennebit. A separate long-term gas sales agreement was also signed with State Concern Turkmengas.

Under the terms of the PSC, Petronas will serve as operator with a 57% interest. XRG holds 38%, while Hazarnebit retains the remaining 5%.

Located in the Caspian Sea, Block I currently produces around 400 million cubic feet of gas per day. The field holds more than 7 trillion cubic feet of natural gas reserves, offering significant potential for future production growth.

XRG said the move aligns with its strategy to grow a diversified global energy portfolio focused on gas, chemicals, and low-carbon energy. The company views the deal as a step toward strengthening energy supply security and expanding its international gas footprint.

“This agreement builds on the UAE’s growing ties with Turkmenistan and reflects our ambition to supply cleaner energy,” said Mohamed Al Aryani, President of International Gas at XRG.

Petronas, which first entered Turkmenistan nearly 30 years ago, said the deal reinforces its long-term commitment to the country’s energy sector.

Adnoc launched XRG, an international lower-carbon energy and chemicals investment company, with an enterprise value of over $80 billion, late last year. XRG operates separately to Adnoc and is expected to double its asset value over the next decade.