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DUBAI, 4th July, 2022 (WAM) — Dragon Oil, an exploration and manufacturing platform completely owned by the Authorities of Dubai, has renewed the partnership contract in Turkmenistan with the state-owned firm, Turkmen Oil, till Could 2025, for a interval of ten extra years with a complete worth of US$1 billion.
US$500 million can be paid in money, whereas the remaining US$500 million can be paid over the following 13 years, which incorporates the corporate’s dedication in direction of the assist of the Turkmen authorities’s tasks, group improvement, training, public well being and a few advantages of the co-production.
The signing ceremony of the settlement was held within the Turkmen capital, Ashgabat, with the presence of Engineer Ali Al Jarwan, CEO of Dragon Oil, and some members of the corporate’s executives.
The Cheleken complicated, situated within the East Caspian Sea in Turkmenistan, is the principle producing asset of Dragon Oil, and consists of two main offshore oil and fuel fields, Lam and Zhdanov, which have been efficiently developed and maintained since 2000, along with yet another potential complicated, which all situated round 10-40 kilometres off the coast of the Chiliken Peninsula and at water depths of 10 to 30 metres.
Over a 22-year interval, the corporate has spent US$8.1 Billion on wells drilling and establishing the suitable manufacturing amenities to help a sustainable manufacturing, with cumulative manufacturing of 437 million barrels of crude oil.
Since 2018, Dragon Oil has shifted manufacturing from pure depletion of typical oil to manufacturing supported by water injection, synthetic lifting and these days fuel injection.
The corporate’s investments, through the contract extension interval, are anticipated to achieve one other US$7-8 Billion to assist growth and improvement programmes, whereas future manufacturing ranges would vary between 60-70 thousand barrels per day, the cumulative manufacturing of crude oil is anticipated to achieve 350 million barrels till the yr 2035.
Saeed Mohammed Al Tayer, MD and CEO of Dubai Electrical energy and Water Authority (DEWA) and Chairman of ENOC and Dragon Oil, expressed his delight on the announcement of the extension of the partnership contract, which confirms the corporate’s stable dedication to strengthening its presence in Turkmenistan, emphasising that the corporate aspires to assist the present growth plans whereas persevering with to work through the forthcoming interval to launch a number of sustainable explorations inside this promising market, creating long-term profit for all.
Al Tayer added that the connection between the UAE and Turkmenistan is creating considerably and progressing at a gentle tempo with the rise of recent investments that contribute to the event and consolidation of relationship between the 2 events in numerous financial and funding fields. He additionally highlighted the depth of relationship between the 2 nations by way of the investments made by Dragon Oil, which has labored for almost 20 years within the area of oil and fuel exploration within the Caspian Sea, to attain mutual profit by way of fruitful cooperation.
For his half, Ali Al Jarwan, CEO of Dragon Oil, said, “We welcome the signing of the contract extension settlement, which represents a continuing dedication by Dragon Oil in direction of its worthwhile investments within the oil and fuel sector in Turkmenistan”, including that the settlement will permit providing extra investments and completion of plans to extend the manufacturing capability of the corporate.
Al Jarwan continued, “The signing of this contract additionally marks a milestone in Dragon Oil’s journey in a sustainable strategic progress and inside the plan to finish progress and growth in its working markets, together with Turkmenistan, Egypt and Iraq, by persevering with to accentuate exploration work, develop fields and restore wells, to extend manufacturing capability to 300 thousand barrels per day by 2026 in comparison with round 160 thousand barrels per day these days, in accordance with its methods and ambitions, which requires the event of current property and the acquisition of recent alternatives.”
Over the previous decade, Dragon Oil has developed from a single-origin oil and fuel firm working in Turkmenistan solely, to a worldwide operator and a world exploration and manufacturing platform, with manufacturing and exploration property in Egypt, Iraq, Algeria and Afghanistan.
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