ADNOC’s XRG Partners Up with Petronas for Offshore Gas Block in Caspian Sea

Wednesday, May 14, 2025

XRG, a subsidiary of Abu Dhabi National Oil Company (ADNOC), Petronas and the Turkmenistan State Enterprise Hazarnebit have signed a new Production Sharing Contract (PSC) with the State Concern Turkmennebit for the offshore Block I gas and condensate fields in Turkmenistan.

Under the terms of the PSC, Petronas will hold 57% participating interest as owner and operator, partnering with XRG with 38%, and the Turkmenistan State Enterprise Hazarnebit holding the remaining 5%.

As part of the transaction, XRG and PETRONAS signed a long-term Gas Sales Agreement (GSA) with State Concern Turkmengas.

Located in the Caspian Sea, Block I currently produces approximately 400 million cubic feet of natural gas per day.

It offers significant long-term potential, with access to over 7 trillion cubic feet of natural gas resources and future opportunities for production capacity expansion.

The collaboration will help to ensure energy supply stability while delivering sustainable growth and economic value, amid rising regional and global demand for natural gas.

"This agreement marks an important milestone in XRG’s global growth strategy and 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.

“By deepening our partnership with Petronas, Hazarnebit, Turkmennebit, and Turkmengas, we are advancing energy security and economic development, while creating long-term value for all stakeholders,” said Mohamed Al Aryani, President, International Gas, XRG.

“As the first international operator in Turkmenistan’s energy sector close to three decades ago, this milestone reinforces our presence and signifies our continued expansion in the Upstream sector. We are privileged to contribute to the ongoing advancement of the nation’s energy industry and remain committed to fostering long-term partnerships with XRG, Hazarnebit, Turkmennebit and Turkmengas,” added Mohd Jukris Abdul Wahab, Executive Vice President and CEO Upstream Petronas.

Categories: Industry News Activity Asia Caspian Sea Oil and Gas

Related Stories

Baker Hughes Sets Up Global Network to Bolster Mature Oil and Gas Fields Production

Woodside Exit Sends East Timor Searching for Greater Sunrise Partner

QatarEnergy Signs Supply Deal for LNG from Woodside's Louisiana Project

Energy Drilling Lands $87M Drilling Job Offshore Malaysia

Inpex Moves $21B Indonesian LNG Project Closer to Investment Decision

Seatrium Inks $390M Deal to Complete Four Offshore Rigs for Keppel’s Rigco

Indonesia's Jangkrik FPU Set for Major Gas Output Boost

Oil India Discovers Gas in Shallow Waters of Krishna-Godavari Basin

Finder Energy Selects Eneos’ Rig for Drilling Job off Timor-Leste

TPAO Eyes Karabakh Offshore Expansion with SOCAR

Current News

Baker Hughes Sets Up Global Network to Bolster Mature Oil and Gas Fields Production

Valaris Secures $600M in New Contracts as Backlog Rises to $4.8B

Production Restart at Australian Offshore Fields Boosts Jadestone's Oil Output

Aramco Targets Hormuz Bypass with East-West Pipeline Expansion

ADES Lands New Offshore Drilling Rig Deals in Angola and Indonesia

Shell to Exit Australia's North West Shelf Project in $1.45B Deal with XRG

Aramco Third Quarter Profit Up 35% Despite War Disruptions

Eni, Petronas JV Brings Indonesian Offshore Gas Field Online

CNOOC Set to Restore Production at Major South China Sea Gas Field

Big Oil Pockets Near-Record Profits but Spending Restraint Signals Long-Term Doubts

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com