Malaysia’s Petronas Carigali (Turkmenistan) plans to implement two new field development projects in Offshore Block 1 in the Turkmen sector of the Caspian Sea – one for natural gas and one for oil, the CEO of Petronas Carigali (Turkmenistan), Ismadi bin Ismail said, Trend’s special correspondent reports.
He made the announcement at a panel discussion on Investment and development opportunities in the Turkmen sector of the Caspian sea as part of the 31st International Conference and Exhibition “Oil and Gas of Turkmenistan” (OGT 2026) in Ashgabat.
According to Ismadi bin Ismail, the company also intends to begin drilling in Blocks 19 and 20 in December 2026. He noted that the remaining resource potential of Block 1 is estimated at more than 70 trillion cubic feet (about 2 trillion cubic meters) of gas and over 200 million barrels of oil and liquid hydrocarbons. To realize this potential, the company needs to continue developing new fields and expanding its marketing capabilities.
“We are currently working on at least two new field development projects: one focused on gas and the other on oil production,” he noted.
Ismadi bin Ismail reported that Petronas Carigali (Turkmenistan) has the capacity to produce more than 500 million standard cubic feet of gas and approximately 30,000 barrels of liquid hydrocarbons per day. The company intends to increase production from Block 1 in collaboration with its partners and the state-owned Turkmengaz.
He also emphasized the need to expand sales markets to fully commercialize the remaining resources. According to him, Petronas is working with its partners and Turkmengaz to identify additional opportunities to monetize gas and other hydrocarbons.
“In order to monetize the entire volume of 70 trillion cubic feet of gas and 200 million barrels of liquid hydrocarbons, we need new markets,” Ismadi bin Ismail stated.
Moreover, he noted that in June 2026, the company signed a production-sharing agreement for Blocks 19 and 20 and expects to begin drilling there in December 2026. In addition, Petronas has signed an agreement for 2D seismic surveys in the northern offshore blocks 11, 12, 13, and 14. According to Ismail, these projects open up opportunities for geological exploration, the involvement of service companies, and the development of Turkmenistan’s oil and gas industry.
Petronas has been operating in Turkmenistan since 1996. In May 2025, the company, XRG, Khazarnebit, and the state-owned Turkmennebit signed a new production-sharing agreement for Block 1, as well as a long-term gas sales agreement with Turkmengaz. According to Petronas, the company is the operator of the block with a 57% stake, while XRG holds 38% and Khazarnebit holds 5%.
Meanwhile, the second day of the 31st International Conference and Exhibition “Oil and Gas of Turkmenistan” (OGT 2026) has begun in Ashgabat. As part of the event, a session is being held on the topic “Investment and development opportunities in the Turkmen sector of the Caspian Sea.” Discussions are focusing on investment opportunities for developing the Turkmen sector, prospects for offshore exploration and production of hydrocarbons, and the development of international partnerships.
The agenda also includes existing and new production-sharing agreements (PSAs), as well as modern seismic survey programs designed to help assess resource potential and prepare promising blocks for development.
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