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OilMonster

Natural Gas October 28, 2019 01:00:42 AM

Turkmenistan to Extend Petronas PSC to 2038

Anil
Mathews
OilMonster Author
The Central Asian nation boasts 20 trillion cubic meters of proven reserves of natural gas – although the total may be higher, as natural gas deposits in the country have yet to be fully explored.
Turkmenistan to Extend Petronas PSC to 2038

SEATTLE (Oil Monster):  The Turkmenistan government plans to extend its production sharing contract (PSC) with Petroliam Nasional Bhd (Petronas) to 2038, Prime Minister Tun Dr Mahathir Mohamad revealed here, today.

Dr Mahathir said the wish was expressed by Turkmenistan President Gurbanguly Berdimuhamedov at a meeting between the two leaders here, on Sunday.

“I discussed the matter with the President (of Turkmenistan) and he welcomed the role of Petronas in Turkmenistan. He expressed his wish that Petronas continue to be active here, and he mentioned a further 10-year extension,” the Prime Minister told Malaysian journalists at a press conference on Sunday night, before ending his two-day official visit to Turkmenistan.

In 1996, Petronas was given a 32-year PSC until 2028 to produce natural gas in the Block 1 offshore area of the Caspian Sea.

Turkmenistan has the world’s fourth largest underground reserves of natural gas after Russia, Iran and Qatar.

The Central Asian nation boasts 20 trillion cubic meters of proven reserves of natural gas – although the total may be higher, as natural gas deposits in the country have yet to be fully explored.

Commenting further, Dr Mahathir said that the PSC extension shows that the Turkmenistan government is satisfied with the role played by Petronas; and expressed confidence the country will consider giving more concessions to Malaysia’s national oil company.

He said in Turkmenistan, Petronas’ involvement is wholly in the production of oil and gas, compared to just 15 per cent in Azerbaijan.

Before his two-day visit to Turkmenistan, Dr Mahathir was in Azerbaijan to attend the 18th Summit of the Heads of State and Government of the Non-Aligned Movement (NAM) in the capital, Baku.

The prime minister also said that President Berdimuhamedov repeatedly expressed his wish that an exposition of Malaysian products be held in the country; and that cooperation in many areas between Malaysia and Turkmenistan could be enhanced.

“We have received a very good response. They are very friendly and I think we can have trade with them, although their population is only five million, and there could be revenue from oil. They are rich, so it would be good for us to take part in trade with them.

“They also want to have shipbuilding here, and we have some knowledge of shipbuilding... We can check whether we can participate in shipbuilding here,” he added.

On Sunday, Dr Mahathir and President Berdimuhamedov held a restricted meeting, followed by a bilateral meeting, and signed a collaboration agreement.

The Malaysian delegation to Turkmenistan includes Foreign Minister Datuk Saifuddin Abdullah and Economic Affairs Minister Datuk Seri Mohamed Azmin Ali.

 

Courtesy: www.nst.com.my

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