kuala lumpur: Petroliam Nasional Bhd (Petronas), a national oil and gas company in Malaysia, has acquired a stake in Turkmenistan’s offshore natural gas block.
In today’s statement, Petronas announced that it has signed a new Production Shared Agreement (PSC) with concerns of UAE-based energy company XRG, Turkmenistan oil and gas companies, provincial company Hazanebit and provincial Turkmenne’s concerns for Block I gas and condensed fields.
Under the terms of the PSC, Petronas will hold 57% participation interest as an operator affiliated with XRG (38%), while the state Enterprise Hazannet holds the remaining 5%.
As part of the deal, a long-term gas sales agreement was also signed with Turkmengas, the state’s national gas company in Turkmenistan.
Located in the Caspian Sea, Block I currently produces around 400 million cubic feet of natural gas per day.
Mohd Jukris Abdul Wahab, executive vice president and chief executive officer of Petronas in Upstream, said nearly 30 years ago as the first international operator of Turkmenistan’s energy sector, the milestone reinforces their presence and means continued expansion in the upstream sector.
“We are able to contribute to the continued progress of the country’s energy industry and continue to work to promote long-term partnerships with XRG, Hazarnubitt, Turkmenbitt and Turkmengas,” he said.
Meanwhile, Mohamed Al Aryani, president of XRG International Gas, said that by deepening partnerships with Petronas, Turkmennebit and Turkmengas, they are promoting energy security and economic development while creating long-term value for all stakeholders.
“The agreement marks an important milestone in XRG’s global growth strategy and is based on the strengthening relationship between the United Arab Emirates (UAE) and Turkmenistan.
“It reflects our ambition to be a reliable supplier of cleaner energy to strengthen XRG’s presence in the Caspia region, expand our resource base and meet the evolving needs of the world,” he added.
