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Abu Dhabi National Oil Company's international investments arm XRG said it had taken a stake in an offshore natural gas block in Turkmenistan, part of its ambitious growth plans.
XRG, set up late last year and which Adnoc has said has $80 billion in assets, has a mandate to pursue global deals in chemicals, natural gas and renewables as Abu Dhabi seeks to build a globe-spanning portfolio in those areas and rely less on revenue from oil exports.
Malaysia's state oil firm Petronas will hold a 57% interest in the offshore "Block I", XRG will own 38% and Turkmen state firm Hazarnebit will have the remaining 5%, XRG said in a statement.
They signed a long-term gas sales agreement with state firm Turkmengas as part of the deal, XRG added. Financial details of the deal were not disclosed.
The three companies also signed a production sharing contract with Turkmen national oil firm Turkmennebit for the offshore block.
The block in the Caspian Sea currently produces 400 million cubic feet of natural gas per day.
"It offers significant long-term potential, with access to over 7 trillion cubic feet of natural gas resources and future opportunities for production capacity expansion," XRG said in its statement. -Reuters