XRG, the international investment division of the Abu Dhabi National Oil Company (ADNOC), has secured a substantial stake in a prominent offshore gas project located in the Caspian Sea region of Turkmenistan. This acquisition was revealed on May 14 by the energy news outlet Neftegaz, referencing the company's press service.

Source: The Times of Central Asia

Founded in late 2024, XRG oversees $80 billion in assets and concentrates on global investments in the sectors of chemicals, natural gas, and renewable energy. This initiative is part of Abu Dhabi’s larger strategy to diversify its international portfolio and lessen reliance on crude oil exports.

Details of the Agreement

• Under the new agreement, Malaysia’s state energy company, Petronas, will maintain a 57% majority stake in Caspian Block I.
• XRG will possess 38%, while the remaining 5% will be held by Turkmenistan’s state company, Khazarnabit.

Additionally, a long-term gas sales agreement has been established with Turkmenistan’s state concern, Türkmengaz. Concurrently, Petronas, Khazarnabit, and the state oil company, Türkmennebit, have finalized a new production-sharing agreement for Block I.

Block I Overview

Situated offshore in the Caspian Sea, Block I currently produces around 400 million cubic feet of natural gas daily and is estimated to contain over 7 trillion cubic feet in reserves. Petronas has been active in Turkmenistan since 1996 and operates a gas processing plant, along with an onshore terminal in Kiyanly.

This recent agreement is a continuation of the momentum gained from a high-level visit by Turkmenistan’s National Leader, Gurbanguly Berdimuhamedov, to the United Arab Emirates in January 2024. During that visit, ADNOC and Türkmengaz signed a memorandum of understanding to investigate joint development opportunities for the third phase of the Galkynyş gas field and its associated infrastructure.