Dragon Oil to expand production at Turkmen offshore fields

Business Materials 15 February 2016 17:39 (UTC +04:00)

Ashgabat, Turkmenistan, Feb. 15

By Huseyn Hasanov- Trend:

UAE's Dragon Oil company has invested $5 billion in the development of the Cheleken contract area's offshore fields for more than 15 years of activity in Turkmenistan, the message of the Ministry of Oil and Gas of Turkmenistan said.

The Cheleken block's contract area in the Turkmen sector of the Caspian field includes Jeitun and Jigalybek fields, which are being developed by Dragon Oil on the basis of production sharing agreement (PSA) signed with the government of Turkmenistan in 1999.

Under the agreement, the operator has a license to develop and produce oil and gas on the contract area for 25 years.

The main investments of the operator were aimed at expanding production capacities and increasing liquid hydrocarbon production, according to the message.

In general, 118 new wells were commissioned since the beginning of the project's implementation. Of these, only in 2015, 12 new wells were drilled, which allowed to bring the average daily oil production to 96,000 barrels, or more than 12,300 tons.

In addition to the main part of work, reconstruction to improve coastal oil and gas infrastructure of the Cheleken contract area continues. Construction of eight new oil storage tanks with a total capacity of 160,000 tons is currently actively underway. It is scheduled to complete this project in the first half of 2016.