Turkmenistan Partnership Strengthens Malaysia's Global Energy Position
From Sharifah Hunaini Syed Ismail
ASHGABAT (TURKMENISTAN), June 20 (Bernama) -- Since 1996, Petroliam Nasional Bhd (Petronas), through its wholly-owned subsidiary Petronas Carigali (Turkmenistan) Sdn Bhd (PC(T)SB), has established a presence in Turkmenistan, a Central Asian nation known for possessing some of the world’s largest oil and gas reserves.
Now marking 30 years in Turkmenistan, the national oil and gas company commemorated the milestone by signing several new agreements to strengthen long-term strategic cooperation with the country.
The historic development coincides with Prime Minister Datuk Seri Anwar Ibrahim’s official visit to Turkmenistan, reflecting the enduring relationship between the two countries and three decades of cooperation built on trust, shared aspirations and sustainable value creation in the energy sector.
A Production Sharing Agreement (PSA) covering Offshore Blocks 19 and 20, as well as a Cooperation Agreement (CA) for a 2D seismic study of northern offshore blocks, were signed by PC(T)SB with Turkmennebit and Hazarnebit to strengthen Petronas' presence in the Caspian Sea and expand its upstream portfolio in the country.
Under the PSA, PC(T)SB will acquire a 100 per cent participating interest in Blocks 19 and 20, marking Petronas' entry into a new exploration area in Turkmenistan.
The CA will enable the acquisition of new seismic data to address existing data gaps and facilitate a more comprehensive assessment of the northern offshore blocks.
In addition, Malaysia and Turkmenistan signed a Long-Term Cooperation Framework Agreement for the Development of Turkmenistan's Hydrocarbon Resources, paving the way for broader collaboration, including potential development of the Galkynysh field, one of the world's largest gas fields, as well as opportunities in downstream and related industries such as oil refining, gas processing and gas-based chemicals.
Petronas described the agreements as reflecting its confidence in the long-term potential of Turkmenistan's energy sector and its commitment to sustained cooperation based on mutual respect and technical collaboration.
Anwar, who was in Turkmenistan on a two-day official visit beginning June 18, witnessed the signing ceremony together with Turkmen President Serdar Berdimuhamedov.
The Prime Minister described Petronas' success in securing access to some of the world's largest gas reserves as an extraordinary achievement that would help alleviate concerns over domestic gas shortages amid global supply challenges, while enhancing Petronas' ability to continue exporting gas from Malaysia to importing countries such as Japan, South Korea, China and others.
Through a joint statement issued during the official visit, Malaysia and Turkmenistan reaffirmed their commitment to expanding cooperation in the energy sector while recognising Petronas' longstanding positive contribution to the industry.
Anwar and Berdimuhamedov also celebrated the 30th anniversary of cooperation between Petronas and Turkmenistan, describing it as a significant milestone in the strong and enduring relationship between the two sides.
Beyond strengthening energy cooperation, the visit provided an opportunity for bilateral discussions between Anwar and Berdimuhamedov, as well as an exchange of views on regional and international issues of mutual interest, particularly developments in ASEAN and Central Asia.
The two leaders discussed the current state of bilateral relations and explored opportunities to further enhance cooperation in trade and investment, agriculture and commodities, energy, tourism, education, digital development, science and technology.
Several agreements and memoranda of understanding (MoUs) were also finalised and signed, including an MoU between the Academy of Sciences Malaysia and the Academy of Sciences of Turkmenistan, an MoU between the aviation authorities of both countries, and an MoU on diplomatic training between the Malaysian and Turkmen governments.
The two sides also signed an Air Services Agreement and announced an MoU between Universiti Tenaga Nasional and higher education institutions in Turkmenistan.
These agreements reflect Malaysia's and Turkmenistan's shared commitment to building a more structured, progressive and complementary bilateral relationship based on strategic interests and long-term benefits for their peoples.
In 2025, Turkmenistan was Malaysia's fourth-largest trading partner among Central Asian countries.
Bilateral trade totalled RM75.8 million, with Malaysian exports valued at RM75.5 million, representing a 9.0 per cent increase from the previous year.
Turkmenistan is also one of Petronas' key investment destinations, with the company's cumulative investment in the country reaching RM52.73 billion since 1996.
Anwar's official visit to Turkmenistan was undertaken at the invitation of President Berdimuhamedov and reciprocated the latter's official visit to Malaysia in December 2024.
The trip marks Anwar's first official visit to Turkmenistan and the fifth by a Malaysian prime minister, underscoring the close and longstanding relationship between the two countries.
-- BERNAMA