XRG, the international investment arm of the Abu Dhabi National Oil Company (ADNOC), has acquired a significant stake in a major offshore gas project in Turkmenistan’s Caspian Sea sector. The deal was announced on May 14 by energy news outlet Neftegaz, citing the company’s press service.

Established in late 2024, XRG manages $80 billion in assets and focuses on global investments in chemicals, natural gas, and renewable energy. The initiative forms part of Abu Dhabi’s broader strategy to diversify its international portfolio and reduce reliance on crude oil exports.

Under the new agreement, Malaysia’s state energy company Petronas will retain a 57% majority stake in Caspian Block I. XRG will hold 38%, while Turkmenistan’s state company Khazarnabit will control the remaining 5%.

A long-term gas sales agreement was also signed with Turkmenistan’s state concern Türkmengaz. In parallel, Petronas, Khazarnabit, and the state oil company Türkmennebit concluded a new production-sharing agreement for Block I.

Located offshore in the Caspian Sea, Block I currently produces approximately 400 million cubic feet of natural gas per day and is estimated to hold over 7 trillion cubic feet in reserves. Petronas has operated in Turkmenistan since 1996 and manages a gas processing plant and onshore terminal in Kiyanly.

This latest agreement builds on momentum from a high-level visit by Turkmenistan’s National Leader Gurbanguly Berdimuhamedov to the United Arab Emirates in January 2024. During the visit, ADNOC and Türkmengaz signed a memorandum of understanding to explore joint development of the third phase of the Galkynyş gas field and associated infrastructure.