Dragon Oil transports around 12 million barrels of oil through Azerbaijan

Oil&Gas Materials 25 July 2012 16:55 (UTC +04:00)

Turkmenistan, Ashgabat, July 25 / Trend H.Hasanov /

Oil and gas company Dragon Oil (UAE), working within the Production Sharing Agreement (PSA) in the Turkmen sector of Caspian Sea, achieved increasing the average daily oil production by 10.7 percent in the first half of the year.

According to the company, the average daily production amounted to 64,200 barrels (more than 11.6 million barrels in the first half of the year) for the first six months of this year compared to 58,000 barrels per day over the same period of last year.

Capital expenditure on infrastructure and drilling operations amounted to $208 million compared to $151 million in 2011.

The company sold 5.8 million barrels of oil in the first half of the year compared to 4.9 million during the same period of 2011.

During this period, the entire volume of crude oil was exported by Azerbaijan, the report said.

Dragon Oil has been registered on the London and Dublin stock exchanges.

The basic PSA agreement with the Turkmen government was signed in 1999. The company operates in the eastern sector of the South Caspian Basin of the Cheleken contract area. The total area of the contract area is approximately 950 square kilometers. It includes the deposits Jeytun and Jigalibeg and Chelekenyangummez.

The company previously reported that $600-700 million is planned to be invested in the Cheleken oil infrastructure development project in the next three years.