Petronas to start Turkmen Caspian exploration in December
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Malaysian state-owned oil and gas company Petronas will begin exploration drilling on Turkmenistan's Caspian shelf in December 2026, according to Prime Minister Anwar Ibrahim. The announcement follows Ibrahim's official visit to Turkmenistan in June, during which a production sharing agreement was signed.
The Agreement
The exploration campaign will be conducted by Petronas Carigali (Turkmenistan) Sdn. Bhd., a subsidiary of Petronas, under a production sharing agreement signed with state concerns Türkmennebit and Hazarnebit. The deal covers offshore gas fields in the Turkmen sector of the Caspian Sea. Prime Minister Anwar Ibrahim confirmed the timeline during a press briefing, citing the agreement reached during his June 2026 visit to Ashgabat.
Strategic Context
Turkmenistan holds the world's fourth-largest natural gas reserves, estimated at 19.5 trillion cubic meters by BP. The Caspian shelf remains largely underexplored, with only a few fields in production. Petronas already operates in Turkmenistan through the Block 1 production sharing agreement, which yielded 4.2 million tons of oil equivalent in 2025.
Gas-to-Gasoline Plant in Ahal Region
A new gas-to-gasoline plant has been commissioned in Turkmenistan's Ahal Province. The facility is expected to reduce the country's dependence on raw material exports and improve utilization of natural resources, according to analyst comments reported by SNG.Today.
MoU Signing Details
The memorandum of understanding was signed by Turkmenistan President Gurbanguly Berdimuhamedov and Malaysian Prime Minister Datuk Seri Najib Tun Razak, not Prime Minister Anwar Ibrahim as stated in the article. The agreement covers cooperation in oil and gas and other issues of common interest.
What's Next
Drilling operations are scheduled to commence in December 2026, with initial results expected by mid-2027. It remains unclear whether Petronas will commit to full-field development pending exploration outcomes.
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Petronas to start Turkmen Caspian exploration in December
