Adnoc’s international investment company XRG has acquired a 38% stake in an offshore natural gas condensate project in Turkmenistan from Malaysia's Petronas.
Petronas, XRG and two Turkmen state companies, Hazarnebit and Turkmennebit, have signed a new production sharing contract (PSC) for Block 1 in the Caspian Sea which was previously also operated under a PSC, Petronas and XRG said in statements on Wednesday.
Under the terms of the new PSC, Petronas will hold a 57% participating interest as the operator, and Hazarnebit will have a 5% stake in the project. The transaction's value was not disclosed.
As part of the transaction, a new long-term gas sales agreement has also been signed with the country’s state gas producer Turkmengaz.
The move reflects ongoing efforts by Turkmenistan authorities to attract new strategic partners to assist with the commercialization of the country’s vast gas resources, the second largest in the Former Soviet Union (FSU), and their export to international markets.
According to Petronas, which signed the original PSC with Turkmenistan in 1996, the Block 1 concession currently produces approximately 11.3 million cubic meters of natural gas per day.