Turkmenistan intends to extend contract with Malaysian PETRONAS

The government of Turkmenistan intends to extend the production sharing contract (PSC) with the Malaysian oil and gas company PETRONAS until 2038.

“I discussed this issue with the president of Turkmenistan, and he welcomed the role of PETRONAS in Turkmenistan. He expressed the wish PETRONAS to continue to work here and mentioned the extension for another 10 years”, – prime minister Mahathir Mohamad told Malaysian reporters at a press conference on Sunday.

PETRONAS develops Block 1 in the Turkmen sector of the Caspian Sea based on a 32-year production sharing agreement. The Malaysian oil and gas company produces natural gas there.

The extension of the contract shows that the government of Turkmenistan is satisfied with the activities of PETRONAS in the country, – Malaysian state news agency Bernama wrote quoting Mahathir Mohamad.

On Sunday in Ashgabat, negotiations between President Gurbanguly Berdimuhamedov and Prime Minister Mahathir Mohamad, who arrived in Ashgabat on an official visit, were held. After the negotiations there were signed documents on cooperation, which, according to the parties, can be expanded.

“The Malaysian delegation included Foreign Minister Saifuddin Abdullah and Economy Minister Seri Mohamed Azmin Ali,” – Bernama adds.