XRG, the low-carbon energy and chemicals investment arm of the Abu Dhabi National Oil Company (Adnoc), has made a significant move into the Central Asian market by investing in Turkmenistan’s gas and condensate fields. The company has secured a 38 percent stake in the offshore “Block I” concession, according to a statement released by XRG.

In this arrangement, Malaysian state-owned oil company Petronas will hold a 57 percent share, while Turkmenistan’s state enterprise Hazarnebit will retain a 5 percent stake. Additionally, XRG and Petronas have entered into a long-term gas sales agreement with the state-run Turkmengas, although no financial details regarding the deal were disclosed.

Block I, located in the Caspian Sea, has a production capacity of 400 million cubic feet of natural gas per day. Industry estimates suggest the long-term potential of the block may exceed access to over 7 trillion cubic feet of natural gas resources. Mohamed Al Aryani, president of international gas at XRG, noted that the agreement enhances the company’s presence in the Caspian region and expands its resource base.

In March, XRG finalized its acquisition of a 10 percent stake from Portugal’s Galp Energia in the Rovuma basin concession in Mozambique. The company is also a major shareholder of the German chemicals producer Covestro.

Adnoc launched XRG in November 2024 with a bold vision to invest $80 billion, aiming to more than double its asset value over the next decade by capitalizing on the growing demand for low-carbon energy and chemicals.