PETRONAS Advances Offshore Oil and Gas Block Development in Turkmenistan

en.Wedoany.com Reported - On October 22, Malaysia's national oil company PETRONAS disclosed the latest progress in Caspian oil and gas development at the Turkmenistan International Oil and Gas Conference, with a focus on advancing the development of offshore Blocks 19 and 20 and seismic exploration in the northern waters. The company's cumulative investment in Turkmenistan has exceeded USD 12 billion, and it has extended the production sharing contract for Caspian Block 1 by 25 years to 2050, further expanding its local oil and gas exploration and development operations.

Offshore Blocks 19 and 20 are located in Turkmenistan's waters of the Caspian Sea. In June this year, PETRONAS Carigali (Turkmenistan) Sdn Bhd, a subsidiary of PETRONAS, signed the relevant production sharing agreements with Turkmenistan's national oil concern and its subsidiary Hazarnebit. The two sides also reached arrangements for 2D seismic exploration in Blocks 11 to 14 in the northern Caspian Sea, expanding the scope of offshore oil and gas resource evaluation and providing geological data for subsequent exploration well deployment and development plan preparation.

PETRONAS entered Turkmenistan's oil and gas market in 1996, primarily developing Caspian Block 1, and has established an oil and gas production and processing system that includes offshore production facilities, natural gas processing units and the Kiyanly terminal. The production sharing contract for Block 1 has now been extended to 2050, enabling existing production facilities and subsequent resource development to continue operating within the long-term contract framework. The company's investment over the past 30 years has covered offshore oil and gas facility construction, exploration and production, natural gas processing and related infrastructure.

In addition to the existing offshore blocks, Malaysia and Turkmenistan also signed a long-term framework agreement on oil and gas resource development cooperation in June this year, covering potential development projects at the Galkynysh gas field as well as refining, natural gas processing and gas chemical sectors. Cooperation related to the Galkynysh gas field remains at the stage of potential project studies and cooperative arrangements, and is at a different stage of development from the Caspian offshore blocks for which production sharing agreements have already been signed.

The Turkmenistan-Malaysia energy cooperation roundtable held on October 24 further discussed cooperation in oil and gas engineering services, equipment supply and technical maintenance. Energy enterprises of the two countries will pursue business matchmaking in areas including offshore engineering equipment, maintenance services, digitalization and methane emissions management. Turkmenistan's national oil concern and Malaysia's Petroleum Resources Corporation signed a relevant memorandum of understanding on cooperation on October 22.