Abu Dhabi’s XRG buys stake in Turkmenistan gas block

XRG, the low-carbon energy and chemicals investment arm of Abu Dhabi National Oil Company (Adnoc), has entered the Central Asian market with an investment in Turkmenistan’s gas and condensate fields.

XRG will hold a 38 percent stake in the offshore “Block I” concession, the company said in a statement.

Malaysian state-owned oil company Petronas and Turkmenistan state enterprise Hazarnebit will hold 57 percent and 5 percent respectively.

XRG and Petronas also signed a long term gas sales agreement with state-run Turkmengas.

No financial details were given.

Located in the Caspian Sea, Block I produces 400 million cubic feet of natural gas per day. Long-term potential is estimated through access to over 7 trillion cubic feet of natural gas resources.

Mohamed Al Aryani, president of international gas at XRG, said the agreement strengthens the company’s presence in the Caspian region and expands its resource base.

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In March, XRG completed its acquisition of a 10 percent stake from Portugal’s Galp Energia in the Rovuma basin concession in Mozambique. It is also a major shareholder of German chemicals producer Covestro.

In November 2024, Adnoc launched the $80 billion XRG, which aims to more than double its asset value over the next decade by capitalising on the demand for low-carbon energy and chemicals.