Petronas to start Turkmen Caspian exploration in December
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Malaysian state-owned oil and gas company Petronas will begin exploration drilling on Turkmenistan's Caspian shelf in December 2026, according to Prime Minister Anwar Ibrahim. The announcement follows Ibrahim's official visit to Turkmenistan in June, during which a production sharing agreement was signed.
The Agreement
The exploration campaign will be conducted by Petronas Carigali (Turkmenistan) Sdn. Bhd., a subsidiary of Petronas, under a production sharing agreement signed with state concerns Türkmennebit and Hazarnebit. The deal covers offshore gas fields in the Turkmen sector of the Caspian Sea. Prime Minister Anwar Ibrahim confirmed the timeline during a press briefing, citing the agreement reached during his June 2026 visit to Ashgabat.
Strategic Context
Turkmenistan holds the world's fourth-largest natural gas reserves, estimated at 19.5 trillion cubic meters by BP. The Caspian shelf remains largely underexplored, with only a few fields in production. Petronas already operates in Turkmenistan through the Block 1 production sharing agreement, which yielded 4.2 million tons of oil equivalent in 2025.
What's Next
Drilling operations are scheduled to commence in December 2026, with initial results expected by mid-2027. It remains unclear whether Petronas will commit to full-field development pending exploration outcomes.
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Petronas to start Turkmen Caspian exploration in December
