XRG, the new energy investment firm owned by Abu Dhabi’s ADNOC, has acquired a 38% stake in a production sharing contract (PSC) for offshore gas and condensate fields in Turkmenistan.
XRG joined Malaysia’s state energy company Petronas and Turkmenistan’s Hazarnebit in signing the PSC with Turkmennebit, the state oil company, for the offshore Block I fields. As part of the deal, XRG and Petronas also signed a long-term gas sales agreement with Turkmengas, the state gas firm.
Petronas will hold the largest share with 57%, acting as the operator. XRG holds 38%, and Hazarnebit owns the remaining 5%.
Block I, located in the Caspian Sea, currently produces about 400 million cubic feet of natural gas daily. The block holds significant potential with over 7 trillion cubic feet of gas reserves and opportunities for future production growth, XRG said.
Mohamed Al Aryani, XRG’s President of International Gas, said the agreement boosts XRG’s presence in the Caspian region and grows its resource base. He added that the move supports the company’s goal to be a reliable supplier of cleaner energy as global needs evolve.
ADNOC launched XRG late last year as an $80 billion energy investment firm. XRG began operations in early 2025. It will focus on global investments in natural gas, chemicals, and lower-carbon energy solutions.
Earlier this year, XRG acquired a 10% stake from Galp in the Area 4 concession in Mozambique’s Rovuma Basin. This project, led by ExxonMobil and Eni, is one of the largest gas discoveries in recent years. It includes LNG projects with a combined capacity of over 25 million tons per year, XRG said.
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