XRG Doubles Down on Caspian Gas in Bold Expansion Play

ADNOC’s New Arm Strikes Turkmenistan Deal While Eyeing Global Reserves

In a move that underscores the growing scramble for gas assets, ADNOC subsidiary XRG has inked a production-sharing contract (PSC) with Petronas, Hazarnebit, and Turkmennebit for Block 1 in Turkmenistan’s Caspian Sea sector. The deal, announced quietly but with seismic implications, grants XRG a 38% stake in the gas and condensate-rich block—marking its second major hydrocarbon coup since launching in late 2024.

“This isn’t just about reserves; it’s about securing supply chains in a region where geopolitics and energy are inseparable,” says a Dubai-based energy analyst familiar with the negotiations.

Petronas, holding 57% as operator, and Hazarnebit’s 5% stake round out the partnership. But the real kicker? A parallel gas sales agreement (GSA) signed with Turkmengas locks in access to Block 1’s current output of ~400 million cubic feet per day—with a staggering estimated 7 trillion cubic feet still untapped. For XRG, the math is simple: control the molecules where demand is rising fastest.

From Mozambique to the Caspian: XRG’s Gas Gambit

Just months after acquiring Galp’s 10% stake in Mozambique’s Area 4 concession—gateway to the massive Rovuma basin—XRG is aggressively pivoting toward gas dominance. Turkmenistan’s Block 1 offers more than resources; it’s a geopolitical chess piece. By anchoring itself in the Caspian, XRG gains leverage in a region critical to supplying China’s West-East pipeline and cushioning European markets seeking non-Russian supply.

“ADNOC didn’t spin up XRG to play small. Their Mozambique and Turkmenistan moves suggest a laser focus on LNG trading corridors,” notes a Singapore-based commodities strategist.

Meanwhile, partner Petronas is juggling its own high-stakes plays. The Malaysian giant, alongside TotalEnergies and QatarEnergy, is weeks away from drilling the Macaw-1 well in Suriname’s Block 64—a campaign that could redefine South America’s energy map. For XRG, such alliances hint at a broader strategy: ride the coattails of established operators while building a gas portfolio that spans continents.

As Turkmenistan aims to stabilize its energy exports and XRG carves out its niche, one thing’s clear: the new player isn’t just collecting assets. It’s assembling a supply chain that could outlast the next energy crisis.