Strong ties, world-class Petronas helped clinch key energy deals, says analyst

 Azmi Hassan says securing upstream opportunities in a foreign country is ‘never a small feat’.

Prime Minister Anwar Ibrahim and Turkmenistan president Serdar Berdimuhamedov in Ashgabat on June 19. (Bernama pic)

PETALING JAYA:

Strong government-to-government relations, combined with Petroliam Nasional Bhd’s (Petronas) global credibility, were the key factors behind Malaysia’s recent energy breakthroughs in Turkmenistan, according to geostrategist Azmi Hassan.

Azmi said securing upstream opportunities in a foreign country is “never a small feat”, particularly in the highly strategic and competitive oil and gas industry.

Azmi Hassan.

“Strong government-to-government relations made this possible, but it should not detract from the credibility and reputation that Petronas has built over decades,” he told FMT.

His comments come after Prime Minister Anwar Ibrahim concluded official visits to Russia and Turkmenistan aimed at strengthening economic partnerships and enhancing Malaysia’s long-term energy security.

During the visits, Anwar announced that Petronas had secured access to one of the world’s largest gas fields in Turkmenistan through new agreements with the Central Asian nation’s state energy entities.

Anwar described the development as an “extraordinary achievement” that strengthens Malaysia’s position in the global energy landscape, while also helping to secure long-term energy supplies and export capacity to markets such as China, Japan and South Korea.

The deal builds on decades of Petronas’s presence in Turkmenistan, as well as earlier diplomatic groundwork, including Turkmenistan president Serdar Berdimuhamedov’s visit to Malaysia in December 2024 and subsequent high-level negotiations.

Anwar also said Russian president Vladimir Putin had assured Malaysia of oil and gas supplies for the next 20 years, reducing reliance on annual contract renewals.

Azmi said the agreements reflect both strong diplomatic ties and Petronas’s standing as a trusted global energy player with a proven track record in delivering projects, managing complex partnerships, and operating across diverse jurisdictions.

He said Malaysia’s long-standing relationship with Russia also helped pave the way for cooperation between Petronas and Rosneft, Russia’s largest state-owned integrated energy company.

Such partnerships, he said, do not emerge overnight but are built on years of diplomatic engagement, commercial trust, and mutual confidence.

“Together, they demonstrate how strong international relationships, backed by a world-class national oil company, can open doors for Malaysia on the global energy stage,” he said. - FMT