Adnoc’s global energy investment arm, XRG, is partnering with Malaysia’s Petronas to enhance its presence in Central Asia by acquiring a stake in Turkmenistan’s offshore gas and condensate field. This strategic collaboration is expected to significantly boost XRG’s operations in the region.

Under the terms of the agreement, Petronas will hold a 57 percent stake in Turkmenistan’s Block I field. XRG will control 38 percent of the asset, while the Turkmen state enterprise Hazarnebit will manage the remaining 5 percent, according to a statement released by XRG on Wednesday.

“This agreement marks an important milestone in XRG’s global growth strategy and builds on the strengthening relationship between the UAE and Turkmenistan,” stated Mohamed Al Aryani, president of international gas at XRG. He added that the deal bolsters XRG’s presence in the Caspian region, increases their resource base, and demonstrates their goal to be a dependable supplier of cleaner energy to cater to the world’s evolving requirements.

Block I, located in the Caspian Sea, currently produces approximately 400 million cubic feet of natural gas per day, with potential for increased production capacity. The field is estimated to contain over 7 trillion cubic feet of natural gas resources.

This announcement follows a series of strategic deals made by XRG since its launch by Adnoc in 2024 to broaden its global operations. Last year, XRG acquired a 10 percent stake in the Area 4 concession in Mozambique’s Rovuma Basin liquefied natural gas projects.

Additionally, in December, XRG revealed its acquisition of the German chemicals company Covestro for an enterprise value of €14.7 billion ($15.3 billion), following shareholder approval of the takeover offer.

XRG, which launched with an enterprise value exceeding $80 billion, aims to double its asset value over the next decade. This growth is expected to be driven by trends in energy transition, advancements in artificial intelligence, and the rise of emerging economies.

Furthermore, XRG’s chemicals platform is set to become a top-five global player, focused on producing and delivering chemical and specialty products to meet a projected 70 percent increase in global demand by 2050, as reported by Adnoc last year. The company is also investing in natural gas projects to address the surging demand for the fuel and its liquefied form.