XRG, the investment division focused on low-carbon energy and chemicals of the Abu Dhabi National Oil Company (Adnoc), has made its entry into Central Asia by investing in the gas and condensate fields of Turkmenistan.
The company will possess a 38 percent interest in the offshore concession known as “Block I,” as stated in their official announcement.
Petronas, the state-owned oil corporation from Malaysia, will own 57 percent, while the Turkmen state enterprise Hazarnebit will hold the remaining 5 percent.
Additionally, XRG and Petronas have formalized a long-term agreement for gas sales with the state-run entity Turkmengas.
No financial information regarding the deal has been disclosed.
Block I, situated in the Caspian Sea, currently produces 400 million cubic feet of natural gas daily, with long-term potential estimated at over 7 trillion cubic feet of natural gas resources.
Mohamed Al Aryani, the president of international gas at XRG, remarked that this agreement enhances the company’s foothold in the Caspian region and broadens its resource portfolio.
Earlier in March, XRG finalized its purchase of a 10 percent share from Portugal’s Galp Energia in the Rovuma basin concession in Mozambique. The company is also a significant stakeholder in the German chemical manufacturer Covestro.
In November 2024, Adnoc initiated the $80 billion XRG initiative, which aims to significantly increase its asset value over the next ten years by leveraging the growing demand for low-carbon energy and chemical solutions.
