XRG, the newly created energy investment firm of Abu Dhabi’s national oil company ADNOC, has taken a 38% stake in a production sharing contract for an offshore block of gas and condensate fields in Turkmenistan.
XRG, Malaysia’s state energy firm Petronas, and Turkmenistan’s state firm Hazarnebit have signed a new Production Sharing Contract (PSC) with state company Turkmennebit for the offshore Block I gas and condensate fields. As part of the transaction, XRG and Petronas signed a long-term gas sales agreement (GSA) with Turkmengas.
Petronas will hold a 57% participating interest as owner and operator in the contract, partnering with XRG with a 38% stake and Hazarnebit with the remaining 5%.
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, XRG said.
The agreement “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,” said Mohamed Al Aryani, President, International Gas, at XRG.
ADNOC announced at the end of last year the creation of the $80-billion XRG energy investment firm, which formally commenced activities in the first quarter of 2025.
Initially, XRG will focus on transformational global investments that create value across natural gas, chemicals, and lower-carbon energy solutions.
Earlier this year, XRG completed an acquisition of Galp’s 10% interest in the Area 4 concession in Mozambique’s Rovuma Basin, with which XRG joins ExxonMobil and Eni to unlock one of the largest global gas discoveries in the past 15 years. The Rovuma Basin offers XRG access to pioneering LNG projects with a combined potential production capacity of more than 25 million tons per annum (mtpa), the company said in March.
By Charles Kennedy for Oilprice.com
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