Ashgabat (TDI): Abu Dhabi National Oil Company’s (ADNOC) international investment arm XRG has acquired a significant stake in a major offshore gas project in Turkmenistan’s Caspian Sea sector.
Established in late 2024, XRG manages $80 billion in assets and focuses on international investments in chemicals, natural gas, and renewable energy. The initiative forms part of Abu Dhabi’s broader initiative to diversify its global portfolio and reduce reliance on crude oil exports.
Under the new deal, Malaysia’s state energy firm Petronas will retain a 57 percent majority stake in Caspian Block I. XRG will control 38 percent, while Turkmenistan’s state company Khazarnabit will hold the remaining 5 percent.
A long-term gas sales deal was also inked with Turkmenistan’s state concern Türkmengaz. In parallel, Petronas, Khazarnabit, and the state oil firm Türkmennebit signed a new production-sharing deal for Block I.
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Located offshore in the Caspian Sea, Block I currently produces about four hundred million cubic feet of natural gas per day and is estimated to hold more than seven trillion cubic feet in reserves. Petronas has working in Turkmenistan since 1996 and runs a gas processing plant and onshore terminal in Kiyanly.
This latest deal builds on momentum from a high-level trip by Turkmenistan’s National Leader Gurbanguly Berdimuhamedov to the UAE in January last year.
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During the trip, ADNOC and Türkmengaz inked a memorandum of understanding (MoU) to explore joint development of the third phase of the Galkynyş gas field and associated infrastructure.
