Petronas Drives New Momentum In Strengthening Malaysia-Turkmenistan Ties Through Strategic Cooperation

By Siti Radziah Hamzah

KUALA LUMPUR, June 25 (Bernama) -- Petroliam Nasional Bhd's (Petronas) expanding role in Turkmenistan has emerged as a key pillar of renewed Malaysia-Turkmenistan relations, following Prime Minister Datuk Seri Anwar Ibrahim's recent official visit to the Central Asian nation, with the national oil and gas company’s long-standing presence continuing to open new avenues for energy cooperation, economic growth and broader bilateral collaboration.

Since establishing diplomatic relations in 1992, Malaysia and Turkmenistan have steadily advanced their relationship through sustained engagement between governments, institutions and industries, reflecting a shared commitment to building a structured, resilient and forward-looking partnership.

Anwar's two-day visit to the "White Marble City" last week was filled with a series of high-level engagements with Turkmenistan President Serdar Berdimuhamedov.

A significant milestone during the visit was the formalisation of a Framework Agreement on Long-Term Cooperation for the Development of Hydrocarbon Resources of Turkmenistan between the Government of Malaysia and the Government of Turkmenistan.

The agreement provides a structured platform for both countries to expand collaboration, including the potential development of the Galkynysh field, as well as opportunities across downstream and adjacent sectors such as oil refining, gas processing and gas chemicals.

Supporting this cooperation, Petronas, through its wholly owned subsidiary Petronas Carigali (Turkmenistan) Sdn Bhd, has further strengthened its presence in the Caspian Sea through a new production-sharing agreement covering offshore Block-19 and Block-20, as well as a cooperation agreement for 2D seismic studies of the Northern Offshore Blocks.

The company also secured a 25-year extension of Block-I in 2025.

The development comes as Petronas marks 30 years of operations in Turkmenistan, a presence that has become one of the strongest foundations of bilateral relations between the two countries and a testament to Malaysia’s ability to build enduring partnerships abroad through its national energy champion.

Petronas’ 30-year presence in Turkmenistan continues to serve as an anchor in supporting the evolution of the country’s energy sector from early exploration into a more integrated offshore and onshore production system, while contributing to human capital development and sustainable operations.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Malaysia stood to benefit from the expansion as it would help secure stable regional energy supplies and spur further participation for Malaysian companies across the oil and gas value chain.

"On the energy security front, the latest ventures can support trade, investment and business activities, especially amid heightened scrutiny surrounding global trade policies and security concerns," he told Bernama.

He added that Petronas' latest acquisitions in Turkmenistan were timely, given the growing importance of securing reliable energy sources amid an increasingly complex global operating environment.

Meanwhile, SPI Asset Management managing partner Stephen Innes said Turkmenistan's substantial gas reserves could support Malaysia's long-term energy and economic interests, with Petronas well placed to leverage its expertise and international presence to unlock opportunities arising from deeper bilateral cooperation.

"The bigger benefit is commercial, as much as energy security. Malaysia already has domestic supply and export capacity, so Turkmenistan's gas helps buffer energy security risks in extreme tail-risk events such as a Hormuz blockade.

"For Petronas, it adds long-life reserves, export optionality and a stronger overseas gas portfolio," he said.

Apart from these, both countries also recognised the importance of expanding cooperation into areas such as tourism, agriculture, education, culture and technology, reflecting a shared commitment to building a more diversified, resilient and future-ready relationship.

During Anwar's official visit, Malaysia and Turkmenistan agreed to explore cooperation in emerging technologies, including artificial intelligence and semiconductors, while strengthening ties between academic institutions through partnerships involving universities and science academies, as well as training programmes for diplomats and young professionals.

The two countries also discussed opportunities in halal industry development, aviation and agriculture as part of broader efforts to expand bilateral economic engagement beyond the energy sector.

Innes said the broader cooperation was significant as it provided Malaysia-Turkmenistan relations with a more durable economic foundation beyond energy.

"Oil and gas will remain the anchor, particularly given Petronas' longstanding presence, but areas such as aviation, artificial intelligence, higher education, halal and agriculture open the door to more diversified trade, investment and services opportunities," he said.

According to Innes, Malaysia's strengths in areas such as halal standards, food processing, agri-technology and digital services could become increasingly relevant as Turkmenistan seeks to modernise and diversify its economy.

While the immediate value remains concentrated in energy, the longer-term importance lies in building a broader two-way economic relationship that is less dependent on a single commodity cycle, he added.

Industry observers note that Petronas’ international ventures have long served a broader national purpose, enabling the company to diversify its resource base, build global capabilities and generate sustainable returns that ultimately contribute to Malaysia’s economic strength.

Beyond direct investment value, Petronas’ continued expansion in Turkmenistan is also expected to create spillover benefits for Malaysian companies, particularly those operating across the oil and gas services ecosystem.

Economy Minister Akmal Nasrullah Mohd Nasir told Bernama that opportunities arising from the agreements were not limited to upstream activities, adding that Malaysian support companies could also participate in the venture.

"Definitely, we are looking beyond upstream opportunity. In that sense, our other support companies can also be part of this venture," he said.

Akmal Nasrullah said opportunities could emerge not only from exploration activities but also from operations, processing and other parts of the gas value chain.

He also highlighted ongoing collaboration in education, noting that Malaysian institutions such as Universiti Teknologi Petronas have played a role in supporting human capital development, with Turkmen students benefiting from scholarship programmes.

As Malaysia continues to strengthen its economic presence abroad, Petronas’ sustained progress in Turkmenistan highlights the wider national value of its international ventures — supporting energy resilience, opening pathways for Malaysian businesses, building strategic relationships, and creating sustainable benefits that flow back to Malaysia.

-- BERNAMA