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Dubai: Dragon Oil, an exploration and manufacturing platform owned by the Dubai authorities, has renewed its contract in Turkmenistan with state-owned Turkmen Oil for 10 years after it expires in Might 2025, at a price of $1 billion (Dh3.67 billion).
The deal will see $500 million paid in money, and the remaining $500 million paid over the following 13 years, together with help for Turkmen authorities tasks, group improvement, schooling, public well being and a few advantages of the co-production.
It was signed within the Turkmen capital, Ashgabat, within the presence of Engineer Ali Al Jarwan, CEO of Dragon Oil, and firm executives.
The Cheleken complicated, situated within the East Caspian Sea in Turkmenistan, is the primary producing asset of Dragon Oil, and consists of two main offshore oil and gasoline fields, Lam and Zhdanov, which have been efficiently developed and maintained since 2000.
An extra potential complicated is situated between 10 and 40 kilometres off the coast of the Chiliken Peninsula at depths of 10 to 30 metres.
Over a 22-year interval, the corporate has spent $8.1 billion on drilling wells and establishing manufacturing services 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, currently, gasoline injection.
The corporate’s investments, throughout the contract extension interval, are anticipated to achieve additional $7 to $8 billion to help enlargement and improvement programmes, whereas future manufacturing ranges are anticipated to vary between 60 and 70 thousand barrels per day, and the cumulative manufacturing of crude oil to achieve 350 million barrels by 2035.
Saeed Mohammed Al Tayer, Managing Director 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 strong dedication to strengthening its presence in Turkmenistan.
He mentioned the corporate aspires to help the present enlargement plans whereas persevering with to work throughout the forthcoming interval to launch a number of sustainable explorations throughout the market, creating long-term advantages for all.
Al Tayer added that the connection between the UAE and Turkmenistan is growing considerably with new investments that consolidate the connection between the 2 international locations.
He additionally highlighted the depth of relationship between the 2 international locations by means of the investments made by Dragon Oil, which has labored for practically 20 years within the Caspian Sea, to attain mutual advantages.
Ali Al Jarwan, CEO of Dragon Oil, mentioned: “We welcome the signing of the contract extension settlement, which represents a relentless dedication by Dragon Oil in direction of its worthwhile investments within the oil and gasoline sector in Turkmenistan”, including that the settlement will enable providing extra investments and completion of plans to extend the manufacturing capability of the corporate.”
Over the previous decade, Dragon Oil has developed from a single-origin oil and gasoline firm working in Turkmenistan solely, to a world operator and a world exploration and manufacturing platform, with belongings in Egypt, Iraq, Algeria and Afghanistan.
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