A commercial flow of natural gas has been recorded at the Magtymguly field in Turkmenistan’s sector of the Caspian Sea following the drilling of appraisal and production well A8.
The well was drilled to a depth of 4,981 metres and tested at more than 1.3 million cubic metres of natural gas per day, along with around 130 tonnes of gas condensate, according to Turkmenistan newspaper.
The well is located within Block 1, operated by Malaysia’s PETRONAS Çarigali in partnership with state-owned Turkmennebit [Turkmen Oil] under a production-sharing agreement (PSA).
Initial well development work is still under way, with production expected to increase as the well moves into full-scale operation.
The results underline the hydrocarbon potential of the Magtymguly field and could support further growth in upstream production in Turkmenistan’s Caspian offshore sector.
Block 1
PETRONAS has been developing Block 1 in Turkmenistan’s Caspian sector under a Production Sharing Agreement signed in 1996.
Located about 80 km southwest of Turkmenbashi, Block 1 covers the Garagol-Deniz, Diyarbekir, Ovez, Mashrykov and Magtymguly fields.
In May 2025, the PSA structure was expanded into a consortium following an agreement signed in Ashgabat. XRG, the international investment company of the UAE’s ADNOC, joined the project, with the participating interests divided as follows: PETRONAS, as operator, 57%; XRG, 38%; and Hazarnebit, a subsidiary of state-owned Turkmennebit, 5%.
As part of the same deal, the PSA partners signed a long-term gas sales agreement with state-owned Turkmengas. The arrangements run for 25 years and provide for continued development of the existing contract area as well as the joint development of a number of new fields.
Current estimates put gas production under the PSA at around 400 million cubic feet per day, equivalent to approximately 11.33 million cubic metres per day or about 4.1 billion cubic metres per year.
The Block I concession offers significant long-term potential, with access to over 7 trillion cubic feet of natural gas resources (approximately 200 billion cubic metres) and future opportunities for production capacity expansion.
Three decades of cooperation
Offshore development has been a key component of Turkmenistan’s long-standing cooperation with PETRONAS. In 2026, the two countries mark 30 years of strategic partnership in the oil and gas sector.
Over the past three decades, substantial production infrastructure has been developed in Turkmenistan’s Caspian offshore and coastal areas. Five modern offshore platforms have been installed, while around 40 exploration, appraisal and production wells have been drilled.
Joint projects have resulted in the production of more than 44 billion cubic metres of natural gas and 16 million tonnes of liquid hydrocarbons.
On the Turkmen coast, the partnership has also delivered a gas processing plant, a coastal gas terminal and facilities for assembling offshore structures.
Further Caspian development
The next phase of cooperation envisages expanding activity across other areas of Turkmenistan’s Caspian sector.
In particular, development work is planned on offshore Blocks 19 and 20.
2D-seismic surveys are also scheduled for Blocks 11, 12, 13 and 14 to provide additional geological data and help assess their resource potential.
The new PSAs, agreements covering seismic surveys and a long-term framework agreement on hydrocarbon development provide a basis for further expanding PETRONAS’ presence in Turkmenistan’s Caspian offshore sector.
The successful drilling of well A8 at the Magtymguly field marks the latest milestone in the partnership and highlights the remaining potential for further development of Turkmenistan’s offshore hydrocarbon resources. ///nCa, 10 August 2026