Malaysia’s Petronas, the UAE’s XRG (a subsidiary of ADNOC), and the Turkmen state owned enterprises Hazarnebit and Turkmennebit have signed a new Production Sharing Contract (PSC) for Block I gas and condensate fields in Turkmenistan. As part of the transaction, a long-term Gas Sales Agreement (GSA) was also signed with Turkmengas.
Under the terms of the PSC, Petronas will hold a 57% participating interest as the operator, partnering with XRG (38%), with the State enterprise Hazarnebit holding the remaining 5%. Located in the Caspian Sea, the Block I concession currently produces approximately 400 mcf/d (4.1 bcm/year) of gas. According to Petronas, the block offers long-term potential, with access to over 7 tcf (198 bcm) of natural gas resources.
In 2023, Turkmenistan had gas reserves estimated at 13,950 bcm and produced 94.5 bcm of gas. Most of the production is exported (72 bcm exported in 2023).