Dubai’s Dragon Oil extends partnership with Turkmenistan’s state oil company for 10 years

Dragon Oil, a subsidiary of Dubai’s Emirates Nationwide Oil Firm (Enoc), has signed an settlement with Turkmenistan’s state-owned Turkmen Oil to increase their partnership for an additional 10 years.

Beneath the $1 billion renewed partnership, which begins in Might 2025, Dragon Oil can pay $500 million in money, with the remaining half unfold out over the following 13 years, UAE state information company Wam reported.

Dragon Oil has invested about $8.1bn in effectively drilling and manufacturing infrastructure over its 22 years in Turkmenistan, reaching a cumulative manufacturing of 437 million barrels of crude oil.

The Cheleken complicated, positioned within the East Caspian Sea in Turkmenistan, is the principle manufacturing asset of Dragon Oil. It consists of two main offshore oil and gasfields, Lam and Zhdanov, which have been developed and maintained since 2000.

The partnership additionally contains one other potential complicated throughout the neighborhood.

The extension of the partnership will enable extra for funding alternatives and assist in finishing plans for rising manufacturing capability as a part of a “fixed dedication by Dragon Oil in direction of its worthwhile investments within the oil and gasoline sector in Turkmenistan”, mentioned Ali Al Jarwan, chief government of Dragon Oil.

“The signing of this contract additionally marks a milestone in Dragon Oil’s journey in a sustainable strategic development and throughout the plan to finish development and growth in its working markets, together with Turkmenistan, Egypt and Iraq,” he mentioned.

Among the many actions to be strengthened are the exploration and improvement of fields and restore wells, which might finally assist to extend manufacturing capability to 300,000 barrels per day by 2026, from about 160,000 at current, Mr Al Jarwan mentioned.

Future investments are projected to achieve between $7bn and $8bn, whereas manufacturing ranges are estimated between 60,000 to 70,000 barrels a day, hitting about 350 million barrels by 2035, the corporate mentioned.

Turkmenistan had greater than 600 million barrels of confirmed oil reserves and 19.5 trillion cubic metres of confirmed pure gasoline reserves on the finish of 2020, in keeping with the BP Statistical Evaluation of World Power 2021.

Oil manufacturing within the nation stood at 216,000 bpd in 2020, the report discovered.

The brand new investments will contribute to the additional improvement of UAE-Turkmenistan ties, with each international locations wanting into varied financial and funding fields, mentioned Saeed Al Tayer, chairman of Enoc and Dragon Oil.

Dragon Oil additionally goals to launch a number of sustainable exploration actions inside Turkmenistan with long-term advantages, mentioned Mr Al Tayer.

Since 2018, Dragon Oil has shifted manufacturing in Turkmenistan from the pure depletion of standard oil to manufacturing supported by water injection, synthetic lifting and, these days, gasoline injection.

Up to date: July 05, 2022, 8:52 AM