Elvira Kadyrova
Turkmenistan President Serdar Berdimuhamedov and Malaysian Prime Minister Anwar Ibrahim held high-level talks today in Ashgabat during the Prime Minister’s two-day official visit. The meeting focused primarily on strengthening bilateral ties within the strategic oil and gas sector.
The high-level talks coincided with the launch of a two-day energy conference titled “Turkmenistan–Malaysia: 30 Years of Mutually Beneficial Cooperation in the Oil and Gas Sector,” where both leaders delivered opening addresses to industry delegates.
A New Phase in Caspian Integration: Key Agreements Signed
The principal outcome of the summit was the signing of a comprehensive package of agreements. These deals significantly expand the footprint of Malaysia’s state-owned energy giant, PETRONAS, on the Turkmen shelf of the Caspian Sea and lay the groundwork for future capital investments:
- New Production Sharing Agreement (PSA): A landmark PSA was signed for the exploration and development of offshore Blocks 19 and 20 in the Turkmen sector of the Caspian Sea. The signatories included Turkmenistan’s state oil company Türkmennebit, the Hazarnebit state enterprise, and Petronas Carigali (Turkmenistan) Sdn. Bhd. The document was executed by Turkmen Deputy Prime Minister Guvanch Agajanov and Mohd Jukris Abdul Wahab, PETRONAS Executive Vice President & CEO of Upstream.
- Seismic Exploration Data: Türkmennebit and Petronas Carigali concluded an agreement on cooperation for 2D seismic studies. The seismic surveys will cover prospective offshore Blocks 11, 12, 13, and 14. The deal was signed by Deputy PM Guvanch Agajanov and Mohd Jukris Abdul Wahab.
- State concern Türkmengaz and Petronas Carigali entered into a confidentiality agreement, paving the way for deeper exchange of technical and geological data. The document was signed by Maksat Babayev, State Minister and Chairman of Türkmengaz, and Mohd Jukris Abdul Wahab.
- A foundational Intergovernmental Agreement on Long-Term Cooperation in Hydrocarbon Resource Development was signed by Turkmenistan’s Deputy PM Guvanch Agajanov and Malaysian Minister of Economy Akmal Nasrullah Mohd Nasir.
A $12 Billion Investment Foundation Extending to 2050
Prime Minister Anwar Ibrahim’s visit builds directly on momentum from President Berdimuhamedov’s official visit to Malaysia in December 2024. Over their three-decade energy partnership, PETRONAS has invested a staggering $12 billion into Turkmenistan’s oil and gas infrastructure.
The cornerstone of PETRONAS’ local operations remains “Block I”, which encompasses major offshore fields including Makhtumkuli, Diyarbekir, Garagol-Deniz, and Oguzhan. The existing PSA for this asset has already been extended through 2050.
In an official statement, the Malaysian Prime Minister’s Office (PMO) emphasized that these newly signed agreements “not only strengthen the friendship between Malaysia and Turkmenistan, but also unlock broader economic and investment cooperation opportunities for the future.”
From Midstream Automation to the Galkynysh Megaproject
Speaking at the energy conference, Türkmengaz Chairman Maksat Babayev noted that three decades of commercial natural gas cooperation demonstrate the scale and reliability of the bilateral relationship.
“Our partnership continues to progress steadily, backed by an active 25-year long-term gas sales and purchase agreement. This provides both nations with long-term stability and predictability,” Babayev stated.
He stressed that the partnership extends far beyond mega-scale upstream projects into midstream and oilfield services. For instance, Türkmengaz is currently executing a turnkey contract worth over $12 million with Malaysia’s Syarikat Engineering. The project covers the supply, installation, and commissioning of automated control and power supply systems at the Naip and Bagadzha liquefied gas tank farms.
Looking forward, Türkmengaz is eyeing Malaysian expertise for the further development of Galkynysh, one of the world’s largest gas fields. Ashgabat is particularly interested in leveraging PETRONAS’ technical capabilities in digitalizing production processes, technological exchange, and new upstream investment initiatives.
The conference brought together a total of 21 Malaysian companies, 20 Turkmen companies and eight international companies, as well as Turkmen government agencies.
According to Malaysian state news agency Bernama, Turkmenistan ranked as Malaysia’s fourth-largest trading partner in Central Asia in 2025. Bilateral trade volumes reached RM 75.80 million, with Malaysian exports accounting for RM 75.50 million—marking a 9.0% year-on-year increase. ///nCa, 19 June 2026