[ad_1]
Dragon Oil, the Dubai government’s exploration and production company, has renewed its contract with Turkmenistan’s Turkmen Oil Company for a further 10 years from May 2025. The total contract value is $1 billion, of which $500 million will be paid in cash and the remaining $500 million will be distributed over the next 13 years.
This includes the company’s commitment to supporting Turkmen government projects, community development, education, public health and some of the benefits of collaborative production.
In addition, Longyou’s investment during the contract extension period is expected to reach another US$7-8 billion to support expansion and development plans.
future production levels
Future production levels will be between 600,000-70,000 barrels per day. Cumulative crude oil production is expected to reach 350 million barrels by 2035.
The signing ceremony of the agreement was held in Ashgabat, the capital of Turkmenistan, and was attended by the CEO of Dragon Oil, engineer Ali Al-Jarwan and several company executives.
Located in the East Caspian Sea of Turkmenistan, the Cheleken complex is Dragon Oil’s main production asset and consists of two major offshore oil and gas fields, Lam and Zhdanov, which have been successfully developed and maintained since 2000, in addition to another potential complex, both located in Biqili About 10 to 40 kilometers off the coast of the Ken Peninsula, with water depths of 10 to 30 meters.
Production facilities
Over the past 22 years, Dragon Oil has spent $8.1 billion on drilling wells and building appropriate production facilities to help achieve sustainable production, producing a cumulative 437 million barrels of crude oil.
Since 2018, Longyou has shifted production from natural depletion of conventional oil to production supported by water injection, artificial lift and more recently gas injection.
Saeed Mohammed Al Tayer, General Manager and CEO of Dubai Electricity and Water Authority (Dewa) and Chairman of Enoc and Dragon Oil, expressed his delight at the announcement of the extension of the partnership contract, confirming the firm’s commitment to strengthening its presence in Turkmenistan, stressing the company’s desire to Support current expansion plans while continuing to work on multiple sustainable explorations in this promising market for long-term benefits for all in the period ahead.
new investment
Al Tayer added that the relationship between the UAE and Turkmenistan is developing significantly and steadily advancing with the increase in new investments, which helps to develop and consolidate the relationship between the two sides in various economic and investment fields.
He pointed out that through the investment of Long Oil, which has been working in the field of oil and gas exploration in the Caspian Sea for nearly 20 years, the depth of the relationship between the two countries has achieved mutual benefit and win-win results through fruitful cooperation.
“We welcome the signing of the contract extension agreement, which represents Dragon Oil’s continued commitment to its profitable investments in Turkmenistan’s oil and gas industry,” Al-Jarwan said, adding that the agreement will allow for more investment and Completing the plan increases the company’s production capacity.
a milestone
Al-Jarwan continued: “The signing of this contract also marks one of Dragon Oil’s plans for sustainable strategic growth and growth and expansion in operating markets including Turkmenistan, Egypt and Iraq through continued intensification of exploration. Milestones. Work, develop fields and workovers to increase production capacity from the current around 160,000 barrels per day by 2026, which requires the development of existing assets and new opportunities for acquisitions.”
Al-Jarwan noted that Dragon Oil (Turkmenistan) Ltd has recently provided operating concessions to improve the performance of each division, including drilling, maintenance and workover.
The integrated work team will continue to contribute to maximizing production for the benefit of Dragon Oil and the government of Turkmenistan.
Over the past decade, Dragon Oil has grown from a single-source oil and gas company operating only in Turkmenistan to a global operator and international exploration and production platform, with production and exploration assets in Egypt, Iraq, Algeria and Afghanistan. It follows a strategy that relies on innovation and the use of the latest technology to diversify its portfolio to achieve sustainable growth and make it more valuable to shareholders. — arab trade news agency
[ad_2]
Source link