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.