Malaysia’s Petronas Carigali (Turkmenistan) plans to execute two new field development projects—focused on gas and oil—in offshore Block 1 within the Turkmen sector of the Caspian Sea.
Sea-news.az reports that Ismadi bin Ismail, Chief Executive Officer of Petronas Carigali (Turkmenistan), announced this on Thursday during a panel discussion on investment opportunities and development prospects in the Turkmen sector of the Caspian Sea at the 31st International Conference and Exhibition “Oil and Gas of Turkmenistan” (OGT 2026) in Ashgabat.
According to Ismail, the company also plans to begin drilling operations on Blocks 19 and 20 in December 2026. He noted that the remaining resource potential of Block 1 exceeds 70 trillion cubic feet (approximately 2 trillion cubic meters) of natural gas, alongside over 200 million barrels of oil and liquid hydrocarbons. To realize this potential, the company must advance the development of new fields and broaden its commercial outlets.
“We are currently working on development projects for at least two new fields: one tailored for gas production and the other for oil,” he stated.
Ismail reported that Petronas Carigali (Turkmenistan) possesses production capacities enabling it to extract over 500 million standard cubic feet of gas and around 30,000 barrels of liquid hydrocarbons per day. Together with its partners and the state concern “Turkmengas”, the company intends to increase output levels at Block 1.
He also emphasized the critical need to expand export markets to achieve complete commercial monetization of the available reserves. According to him, Petronas is actively collaborating with its partners and Turkmengas to explore additional monetization avenues for gas and other hydrocarbons.
“To monetize the full volume of 70 trillion cubic feet of gas and 200 million barrels of liquid hydrocarbons, we require new markets,” Ismail noted.
He recalled that in June 2026, the company signed a Production Sharing Agreement (PSA) for Blocks 19 and 20, with plans to initiate drilling in December 2026. Furthermore, Petronas executed an agreement to conduct 2D seismic surveys across northern offshore structures—Blocks 11, 12, 13, and 14. According to Ismail, these initiatives create fresh opportunities for geological exploration, the involvement of oilfield service companies, and the overall growth of Turkmenistan’s energy sector.
Petronas has been operating in Turkmenistan since 1996. In May 2025, the company, XRG, the enterprise “Hazarnebit”, and the State Concern “Turkmennebit” signed a new Production Sharing Agreement for Block 1, as well as a long-term gas sales agreement with Turkmengas. According to Petronas, the company serves as the operator of the block with a 57 percent interest, while XRG holds a 38 percent stake and Hazarnebit holds 5 percent.
It should be noted that the second day of the 31st International Conference and Exhibition “Oil and Gas of Turkmenistan” (OGT 2026) is underway in Ashgabat. A dedicated session titled “Investment Opportunities and Prospects for the Development of the Turkmen Sector of the Caspian Sea” is being held as part of the event. The session covers investment potential for developing the sector, prospects for offshore hydrocarbon exploration and production, as well as the enhancement of international partnerships.
The agenda also features ongoing and new Production Sharing Agreements (PSAs), along with modern seismic survey initiatives designed to assist in evaluating resource potential and preparing prospective structures for field development.
