BAKU, Azerbaijan, June 20. Turkmenistan and Malaysia signed a production sharing agreement for Block 19-20 offshore Caspian development with PETRONAS.
This was reported in a joint statement by the Ministry of Foreign Affairs of Malaysia following the Malaysia-Turkmenistan Forum in Ashgabat.
“The Leaders emphasized the strategic importance of the signing in Ashgabat of the Production Sharing Agreement between Turkmennebit, PETRONAS Carigali (Turkmenistan) and Hazarnebit,” the statement said.
According to Malaysian Prime Minister’s publication on his X account, the PSA covers Block 19 and Block 20 offshore hydrocarbon areas in the Turkmen sector of the Caspian Sea.
He noted that the agreement was signed alongside a broader package of upstream cooperation documents between the two countries.
The package includes a framework agreement on long-term hydrocarbon development cooperation between the governments of Turkmenistan and Malaysia, the report says.
According to the statement, the package also includes a cooperation agreement on 2D seismic studies between Turkmennebit and PETRONAS, and a confidentiality agreement involving Turkmengas and PETRONAS Carigali International Ventures.
The documents were signed during the Malaysia-Turkmenistan Forum held in the presence of President Serdar Berdimuhamedov and Prime Minister Anwar Ibrahim in Ashgabat, the publication says.
For reference, PETRONAS has maintained a presence in Turkmenistan since July 1996, when it became the first foreign company to sign a production-sharing agreement (PSA) for offshore Block I in the Turkmen sector of the Caspian Sea. The block includes the Magtymguly, Diyarbekir, and Garagol-Deniz fields and remains one of the country’s key offshore energy assets. This year also marked two decades of cooperation between Turkmenistan and PETRONAS in the gas processing sector.
In May 2025, PETRONAS signed a new long-term agreement for Block I, extending its operations in Turkmenistan through 2050. Under the updated arrangement, the offshore project currently produces around 400 million cubic feet of natural gas per day and has access to more than 7 trillion cubic feet of gas resources.
