XRG secures major gas partnership with Petronas in Turkmenistan
XRG has significantly expanded its Central Asian presence by acquiring a 38% stake in Turkmenistan's offshore "Block I" gas and condensate fields, the company announced yesterday.
The Abu Dhabi-based energy investment firm signed a Production Sharing Contract (PSC) alongside Malaysian energy giant PETRONAS and Turkmenistan State Enterprise Hazarnebit with the State Concern Turkmennebit. The partners also finalised a long-term Gas Sales Agreement with State Concern Turkmengas.
Under the agreement, PETRONAS will maintain operational control with a 57% interest, while Turkmenistan's Hazarnebit holds the remaining 5% stake.
Block I, situated in the Caspian Sea, currently produces approximately 400 million cubic feet of natural gas daily and provides access to over 7 trillion cubic feet of natural gas resources, with potential for future expansion.
Mohamed Al Aryani, President of International Gas at XRG, described the deal as "an important milestone in XRG's global growth strategy" that "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."
This acquisition advances XRG's strategy to develop a diversified international energy portfolio focused on gas, chemicals, and low-carbon energy solutions. The wholly ADNOC-owned company, with an enterprise value exceeding $80 billion, continues to expand its investments in lower-carbon energy and essential chemical production worldwide.
