PETRONAS CARIGALI (TURKMENISTAN) SDN BHD – PC(TC)SB
Petronas Carigali (Turkmenistan) is a subsidiary of Petronas, the Malaysian national petroleum company, which is wholly-owned by the Malaysian government.
Kuala Lumpur Office
Level 29, Tower 1, PETRONAS Twin Towers,
Kuala Lumpur City Centre, 50088
Kuala Lumpur, Malaysia
T: +603 2051 5000 / 2026 5000 / 2051 1900
F: +603 2026 5011/ 2051 5612/ 1902
Gowsudow Kocesi 9/1,
T: +993 12 393 898/875
F: +993 12 393 893
History in Turkmenistan
In July 1996, Petronas and the government of Turkmenistan signed a 25-year Production Sharing Agreement for the exploration, development and production of offshore Block 1, including the Garagel-Deniz (Gubkin), Deyarbekir (Barinov) and Magtymguly (East Livanov) fields.[i] Block 1 is located approximately 80 km southwest of Turkmenbashi.[ii] This was the first PSA to be awarded by the government of Turkmenistan. That same year, the government of Turkmenistan announced that Petronas planned to invest more than $210 million in its operations.[iii]
By 2002, Petronas had successfully drilled and tested four wells, indicating vast oil and gas reserves at a high rate of flow.
In October 2003, Petronas signed a Memorandum of Understanding with Dragon Oil to explore possible areas for collaboration, including “gas development, transmission, marketing and sales of gas, drilling services, and field operations and logistics.”[iv]
In June 2006, “KazTransGas, which is part of Kazakhstan’s national oil and gas company KazMunayGas and Turkmenistan-based PETRONAS Charigali Sdn.Bhd, a subsidiary of Malaysian PETRONAS Carigali Overseas Sdn. Bhd,…signed a memorandum of understanding on natural gas transportation from Turkmenistan using Kazakhstan’s pipeline network”.[v] A press release from KazTransGas stated that “the aim of the memorandum is to determine the definition of the areas and terms of cooperation between the countries in the transportation of natural gas from the future Beregovoi onshore terminal in Turkmenistan via Kazakhstan’s operating pipelines MG Okarem-Beineu and MG SAZ-3.”[vi]
Current Scope of Operations
In June 2007, Petronas announced plans to construct a processing plant to extract gas in Turkmenistan, with an anticipated annual production of up to 10bn cubic meters of gas.[vii] In December 2007, Petronas was granted permission to construct oil platforms and participate in pipeline construction in Turkmenistan.[viii] According to a July 2008 article, a 1202 ton platform was installed for Petronas by Momentum Engineering in 197 feet of water offshore of Turkmenistan.[ix]
In September 2010, Turkey’s Energy Minister stated that the company may be interested in purchasing the 5-5.5 Bcm of gas that Petronas is developing, with the intention of importing the gas to Turkey or transporting it to other countries.[x] In October 2010, the government of Turkmenistan announced that Petronas would soon begin industrial gas production, possibly before the close of the year, with initial output of 5 Bcm/year and an eventual annual production of 10 Bcm. The export route was not specified.[xi]
After a December 2011 in-country meeting with Turkmen President Gurbanguly Berdimuhmedov, Prime Minister Najib of Malaysia announced Petronus’ desire to enter downstream petrochemical operations in Turkmenistan. He also shared that Petronus was being considered for the construction of new gas platforms, and that the company had offered to develop a Turkmen oil and gas institute.[xii]
Petronas was a “Bronze Sponsor” of the 2010 Turkmenistan International Oil and Gas Conference.
According to a March 2008 presentation by Petronas’ HSE Manager in Turkmenistan, Maharip B. Juni, the “major possible threat with potential discharge of oil are most likely from the following incidents: loss of well control (blow out), pipeline leak, FSO/export tanker leak, tanker accidents, release of bunker oil and other possible sources such as discharge of diesel oil.”[xiii] As such, Petronas has adopted a three “tiered response strategy…for mitigation and clean-up operations, in the event of a discharge”.[xiv] According to Mr. Juni, the first Tier includes minor discharges/spills (less than 300 bbls) in non-sensitive areas that can be controlled in-house, and Tier II includes medium discharges/spills (up to 20,000 bbls) that exceed the Tier one on-site capacities, but can be managed with the aid of resources from the Turkmenbashi Supply Base or contractors. Tier III “is a major discharge/worse case discharge that requires involvement of government agencies. The National Contingency Plan is used to coordinate the inter-agency cooperation.”[xv] In addition, Petronas “has made a retainer based arrangement through the OSR Contractor to deal with Tier III oil spill of up to 84,000 containment and clean-up operation occurring at sensitive areas or of an oil spill up to 20,000 bbls.”[xvi]
The Petronas website describes various community outreach activities, including a scholarship program, supplying books for a children’s library, and technician training for industry professionals.[xvii]
In October 2010, it was reported that Petronas had invested $3 billion in Turkmenistan since it became operational in the country.[xviii]
a13ffc9e.aspx. Accessed September 2, 2008.