Turkmenistan, Ashgabat, Oct.2 / Trend H. Hasanov /
The State Agency for Management and Use of Hydrocarbon Resources of Turkmenistan is planning to conclude a new agreement with Dragon Oil Company, an official Turkmen source said today.
The question is about order of distribution of shares in oil production between the sides in the relevant contract.
Basic product sharing agreement (PSA) with the Turkmen Government was signed in 1999. The total area of the contract territory is approximately 950 square kilometers, including fields Jeytun and Jigalibeg and Chelekenyangummez. Explored reserves of the block hit about 85 million tons of oil and 62 billion cubic meters of gas.
Dragon Oil PLC plans to increase investments to $600-$700 million in 2010. In 2009, the volume of investments amounted to approximately $ 450 million. The project includes the reconstruction and construction of drilling platforms, pipelines, modernization of coastal structures, and construction of storage tanks.
In the first half of 2010, revenue Dragon Oil, whose shares are placed at the London and Irish stock exchanges, rose by 31 percent compared to the same period last year. The Company's average daily oil production increased by 8 percent.
During this period, Dragon Oil received profit worth $137.6 million compared to $105 million in the first half of 2009. The company links this with higher prices in the oil market.
The average daily oil production in the first half of 2010 hit 46.420 barrels compared to 42.808 barrels per day in 2009. Transportation of oil is carried out through the Baku port of Azerbaijan. The relevant contract was signed in June 2010.