Turkmenistan wants to extend its production sharing contract (PSC) with Petroliam Nasional Bhd (Petronas) to 2038, Bernama news agency cites Malaysian Prime Minister Tun Dr Mahathir Mohamad saying during a Sunday press briefing.
The Prime Minister said the wish was expressed by President of Turkmenistan Gurbanguly Berdimuhamedov at a meeting between the two leaders on October 27.
“I discussed the matter with the President and he welcomed the role of Petronas in Turkmenistan. He expressed his wish that Petronas should continue to be active here, and he mentioned a further 10-year extension," Mahathir said.
In 1996, Petronas was given a 32-year PSC until 2028 to produce natural gas in the Block 1 offshore area in the Caspian Sea. Since then, the national oil and gas company had invested about $11 billion in the country.
The Petronas is also mentioned in the Joint Declaration between Turkmenistan and Malaysia, adopted during the official visit of the Prime Minister of Malaysia to the country.
“The parties, recognizing the need to encourage foreign investment in order to accelerate the economic prosperity of both states, noted the positive long-standing experience of Petronas in the oil and gas sector of Turkmenistan and expressed their readiness to further develop mutually beneficial cooperation,” the Decleration said.
Minister of Economic Affairs of Malaysia Datuk Seri Mohamed Azmin Ali held meeting with the Deputy Chairman of the Cabinet of Ministers of Turkmenistan Myratgeldy Meredov and Advisor to the President of Turkmenistan on oil and gas issues Yagshigeldy Kakayev in order to discuss cooperation in the oil and gas industry, within the framework of the Prime Minister of Malaysia’s official visit to Ashgabat.