We extend the Penrose polynomial, originally defined only for plane graphs,
to graphs embedded in arbitrary surfaces. Considering this Penrose polynomial
of embedded graphs leads to new identities and relations for the Penrose
polynomial which can not be realized within the class of plane graphs. In
particular, by exploiting connections with the transition polynomial and the
ribbon group action, we find a deletion-contraction-type relation for the
Penrose polynomial. We relate the Penrose polynomial of an orientable
checkerboard colourable graph to the circuit partition polynomial of its medial
graph and use this to find new combinatorial interpretations of the Penrose
polynomial. We also show that the Penrose polynomial of a plane graph G can be
expressed as a sum of chromatic polynomials of twisted duals of G. This allows
us to obtain a new reformulation of the Four Colour Theorem
