At the Turkmenistan Investment Forum (TIF) 2025, held in the National Tourist Zone “Awaza,” Malaysian energy giant Petroliam Nasional Berhad (PETRONAS) showcased its enduring commitment to Turkmenistan’s fuel and energy sector. Under the theme “Stable and Reliable Energy Resilience – Development of Priority Sectors in Turkmenistan’s Fuel and Energy Complex,” the presentation made by compnay’s CEO Ismadi Bin Ismail highlighted nearly three decades of collaboration, significant investments, and forward-looking initiatives.
PETRONAS, with assets in Kiyanly, emphasized its role in fostering mutual growth.
A Timeline of Mutual Success
PETRONAS’s journey in Turkmenistan began in July 1996 with the signing of the Production Sharing Contract (PSC) for Block 1. This marked the start of a partnership that has evolved into a cornerstone of energy development in the region. Key milestones include:
- March 2006: The first extended well test, setting the stage for commercial production.
- August 2011: Commissioning of the GTPOGT Plant and the first production from the Magtymguly Field.
- April and September 2015: Initial production from the Central Diyarbekir and West Diyarbekir Fields.
- August 2021: First production from the Garagol Deniz Field.
- June 2024: A pivotal meeting with the National Leader of the Turkmen People.
- December 2024: A landmark visit securing future prospects, including the signing of a protocol for a new PSC.
- January 2025: Signing of the Crude Sales and Purchase Agreement (SPA).
- May 2025: Execution of a new PSC and Gas Sales and Purchase Agreement (GSPA).
Looking ahead, tentative milestones include expected first gas from the Central Diyarbekir (CD) Infill in September 2025 and from the Magtymguly (MGT) Infill in 2026. These developments underscore PETRONAS’s focus on expanding offshore operations, including mobile offshore production units (MOPUs) and infill drilling programs.
Over 29 years, PETRONAS has invested a total of $11.64 billion in Turkmenistan’s petroleum operations.
This has yielded cumulative production of 134.43 million barrels (MMBBL) of liquid and 1,568.55 billion standard cubic feet (BSCF) of gas, equivalent to 0.41 billion barrels of oil equivalent (BOE).
The company’s workforce stands at 656 headcount, with 89% local Turkmen nationals, reflecting a strong emphasis on localization. Beyond operations, PETRONAS has contributed significantly to human capital development:
- Since 1998, 187 students have received scholarships to Universiti Teknologi PETRONAS (UTP), with 12 new awards in the current year and 26 students actively studying.
- 94 internships have been provided through collaborations between the International Oil and Gas University (IOGU) and UTP.
- Over $21 million in value has been realized through digital and technology (DigiTech) initiatives.
PETRONAS also aligns with global sustainability goals through its Carbon Commitment, targeting net-zero emissions by 2050. This includes investments in renewable energy, zero continuous flaring and venting in designs and existing facilities, and carbon capture, utilization, and storage (CCUS) technologies.
2025 Spotlight: New Agreements Pave the Way Forward
The year 2025 has been particularly transformative, with three major agreements solidifying PETRONAS’s long-term presence:
- New Production Sharing Agreement (PSA): A +25-year extension between Turkmennebit, PC(T)SB (PETRONAS Carigali Turkmenistan Sdn Bhd), ADNOC, and Hazarnebit.
- New Gas Sales and Purchase Agreement (GSPA): A 25-year deal between Turkmengaz, PC(T)SB, and ADNOC.
- New Crude SPA: A 1+1-year agreement between Turkmennebit, Bukhara Oil Refinery, other buyers, and PC(T)SB.
Untapped Potential in Block 1
Block 1 holds substantial reserves, estimated at 7 trillion cubic feet (TCF) of gas and approximately 200 million barrels (MMbbl) of liquid. Future field developments, spanning from 2025 to 2050, will be driven by gas market certainty and project commerciality. PETRONAS views these as prime opportunities for expanding production, leveraging Turkmenistan’s vast energy resources to meet global demand.
Innovation remains at the heart of PETRONAS’s strategy. The presentation outlined a technology roadmap divided into “The Base” – achievements to date – and “The Vision” for the next few years: