PETRONAS CARIGALI (TURKMENISTAN) SDN BHD – PC(TC)SB
www.petronas.com 

Company Information
Petronas Carigali (Turkmenistan) is a subsidiary of Petronas, the Malaysian national petroleum company, which is wholly-owned by the Malaysian government.

Contact Information
Kuala Lumpur Office
General Manager
Level 29, Tower 1, PETRONAS Twin Towers,
Kuala Lumpur City Center, 50088
Kuala Lumpur, Malaysia
T: +603 2051 5000 / 2026 5000 / 2051 1900
F: +603 2026 5011/ 2051 5612/ 1902

Beyik Saparmurat Turkmenbashy Sayoli,
81, Ashgabat, 744027,
Turkmenistan
T: +00 993 12 398000
F: +00 993 12 398020

History in Turkmenistan
In July 1996
, Petronas and the government of Turkmenistan signed a 25-year Production Sharing Agreement(PSA) 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, “KazTransGaz, which is part of Kazakhstan’s national oil and gas company, KazMunayGaz, 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 KazTransGaz 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]

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 country may be interested in purchasing the 5-5.5bcm 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 5bcm/year and an eventual annual production of 10bcm. The export route was not specified.[xi]

After a December 2011 in-country meeting with Turkmen President Gurbanguly Berdymukhamedov, Prime Minister Najib of Malaysia announced Petronas’ desire to enter downstream petrochemical operations in Turkmenistan. He also shared that Petronas 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 has been a routine sponsor of the Turkmenistan International Oil and Gas Conference, bronze 2010, silver 2019, gold 2020, and bronze again in 2021. Petronas was also a platinum sponsor of the 2019 Turkmenistan International Gas Congress.[xiii]

Current Scope of Operations
In 2013
, a Memorandum of Understanding was signed between Universiti Teknologi Petronas, a Petronas owned private university in Malaysia, and Turkmenistan’s International Oil and Gas University. This memorandum has resulted in the recruitment of Turkmenistani students to study at the Malaysia based private university.[xiv] Interestingly, the Turkmenistani government decided in 2015 [xv] and 2017 [xvi] to restrict students from studying abroad, with the latter resulting in a list of accepted universities, which does not include any universities in the Western hemisphere within the top 1000 global universities. These decisions, however, did not affect students enrolled at Petronas University. 

In 2016, Petronas expanded its operations at the Garagol Deniz West field, Block 1, with the launching of a new drilling platform, according to Offshore Energy.[xvii] According to Nebit-Gaz, an online Turkmen oil and gas newspaper, the company planned to drill three new wells within the sector. Further, Petronas had built a number of new offshore platforms in the previous year. These platforms appear to be for natural gas extraction.

In 2019, following a meeting between Prime Minister Tun Dr Mahathir Mohamad of Malaysia and President Berdymukhamdeov, Petronas’ production sharing contract was extended until 2038.[xviii]

Petronas’ latest activity in Turkmenistan (2021) was the launching of yet another platform, GDDP-A (Garagol Deniz Drilling Platform) in the Garagol Deniz West field, this time for oil extraction. According to Petronas Carigali CEO, the company expects an initial rate of 6,700 barrels per day at the field. Further, the extracted crude oil would be processed at the Gas Treatment Plant & the Onshore Gas Terminal (GTP and OGT) where it would then be sent for export. [xix]

According to ILK Construction, a Turkish based construction company favored in Central Asia, the company has built 10 separate projects for Petronas in Turkmenistan: (1) the EPCC of Central Diyarbekir Oil Development Project, (2) the EPCC of West Diyarbekir Drilling Platform Project, (3) the EPCC of Garagol Deniz West Offshore Platform Project, (4) the EPIC of Offshore Transportation & Installation Works, (5) the EPCC of Temporary Camp Facilities of Turkmenbashi Onshore Gas Terminal Project, (6) the EPCC of Break water, Quay Wall, Mooring Facilities, Wharf, Beacon Light and Auxiliary Works Project, (7) the PCC of Secant Pile for Wharf Zone I & III Project, (8) the Tankage Works at OGT Project, (9) the Maghtumguly Collector Riser Platform Project, and (10) the Maghtumguly Drilling Platform-A Project. [xx]

Environmental Concerns
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.”[xxi] As such, Petronas has adopted a three “tiered response strategy…for mitigation and clean-up operations, in the event of a discharge.”[xxii] 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.”[xxiii] 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.”[xxiv]

Community Relations
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.[xxv]

Financial Disclosure
In October 2010
, it was reported that Petronas had invested $3 billion in Turkmenistan since it became operational in the country.[xxvi] According to the Malaysia based national newspaper, the Sun Daily, Petronas had invested $10 billion into Turkmenistan by 2019.[xxvii]

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[i] http://findarticles.com/p/articles/mi_m3159/is_1_224/ai_n27586251/pg_3?tag=artBody;col1. Original weblink no longer active.

[ii] https://www.osce.org/eea/31175. Accessed February 18, 2022.

[iii] Reuters, “Malaysians on the Caspian Sea,” June 10, 2005, http://www.turkmenistan.ru/?page_id=6&lang_id=en&elem_id=6726&type=event&sort=date_desc. Original weblink no longer active.

[iv] Oil Voice, “Dragon Oil & Petronas Sign Turkmenistan Exploration Deal,” October 17, 2003, http://www.oilvoice.com/n/Dragon_Oil_Petronas_Sign_Turkmenistan_Exploration_Deal/

a13ffc9e.aspx. Original weblink no longer active.

[v] New Europe, “Petronas to Use Kazakh Pipes to Export Turkmen Gas,” June 10, 2006, http://www.neurope.eu/article/petronas-use-kazakh-pipes-export-turkmen-gas. Original weblink no longer active.

[vi] New Europe (June 10, 2006).

[vii] Emerging Europe Monitor, “Petronas Builds Gas Processing Plant in Turkmenistan,” June 2007, http://www.emergingeuropemonitor.com/file/46956/petronas-builds-gas-processing-plant-in-turkmenistan.html. Original weblink no longer active.

[viii] http://www.energycurrent.com/index.php?id=2&storyid=7506. Original weblink no longer active.

[ix] Offshore, “Platform Installed in Caspian for Petronas,” July 9, 2008, http://www.offshore-mag.com/articles/2008/07/platform-installed-in-caspian-for-petronas.html. Accessed February 18, 2022.

[x] Upstreamonline.com, “Turkey Eyes Gas from Petronas,” September 16, 2010, http://www.upstreamonline.com/live/article229597.ece. Original weblink no longer active.

[xi] Upstreamonline.com. “Petronas Primes Turkmen Flows,” October 19, 2010, http://www.upstreamonline.com/live/article233084.ece. Original weblink no longer active.

[xii] Ibid.

[xiii] 26th Turkmenistan International Oil and Gas Conference, https://www.ogt-turkmenistan.com/en. Accessed November 4, 2021.

[xiv] Turkmenportal, “The company “PETRONAS Charigali (Turkmenistan) Sdn Bhd” invites you to study at the technological University “PETRONAS,” https://turkmenportal.com/en/blog/25855/the-company-petronas-charigali-turkmenistan-sdn-bhd-invites-you-to-study-at-the-technological-university-petronas. Accessed December 2, 2021. 

[xv] Jardine, Bradley. The Diplomat, “In Turkmenistan, Border Woes Trump Education,” July 23, 2015, https://thediplomat.com/2015/07/in-turkmenistan-border-woes-trump-education/. Accessed December 2, 2021.

[xvi] Baumgartner, Pete. Radio Free Europe / Radio Liberty, “’Killing Hope’: Turkmenistan’s List Of ‘Accepted’ Universities Deals (Another) Blow To Students,” April 24, 2019, https://www.rferl.org/a/killing-hope-turkmenistan-s-list-of-accepted-universities-deals-(another)-blow-to-students/29901588.html. Accessed December 2, 2021. 

[xvii] Offshore Energy, “Petronas to spin drill bit in Turkmen sector of Caspian Sea soon,” March 31, 2016, https://www.offshore-energy.biz/petronas-soon-to-spin-drill-bit-in-turkmen-sector-of-caspian-sea. Accessed December 2, 2021. 

[xviii] New Straits Times, “Dr M: Turkmenistan to extend Petronas PSC to 2038,” October 27, 2019, https://www.nst.com.my/news/nation/2019/10/533769/dr-m-turkmenistan-extend-petronas-psc-2038. Accessed December 2, 2021.

[xix] Business Turkmenistan, “Petronas Launches Oil Production Platform in Caspian Sea’s Turkmen Sector,” April 13, 2021, https://business.com.tm/post/6919/petronas-launches-oil-production-platform-in-caspian-seas-turkmen-sector. Accessed December 2, 2021. 

[xx] ILK Construction, “Projects,” http://www.ilkconstruction.com/project-search/. Accessed January 12, 2022.

[xxi] Juni, Maharip. “Petronas OSR Capability in Turkmenistan,” OSCE Oil Spill Response Workshop, March 11, 2008, http://www.osce.org/eea/31175. Accessed February 18, 2022.

[xxii] Juni (2008).

[xxiii] Juni (2008).

[xxiv] Juni (2008).

[xxv] Petronas, Turkmenistan, http://www.petronas.com.my/community-education/community/global-outreach-programme/Pages/global-outreach-programme/turkmenistan.aspx. Original weblink no longer active.

[xxvi] Upstreamonline.com (October 19, 2010).

[xxvii] The Sun Daily, “Huge investments in Turkmenistan reflects Petronas’ confidence in long-term partnership: Azmin,” October 27, 2019, https://www.thesundaily.my/local/huge-investments-in-turkmenistan-reflects-petronas-confidence-in-long-term-partnership-azmin-DX1541948. Accessed February 17, 2022.