Dubai-owned upstream exploration and production company Dragon Oil has extended its partnership contract with Turkmenistan’s national oil firm for another 10 years with a total value of $1 billion.
The company, which has since been operating in the Central Asian country for more than two decades, said the extension would effectively expand its programs in Turkmenistan, with the cumulative crude oil production to reach 350 million barrels by 2035.
Under the deal, $500 million will be paid in cash, and the rest will be paid over the next 13 years.
Saeed Mohammed Al Tayer, chairman of Dragon Oil, said it will continue to work to “launch several sustainable explorations” in the country, state news agency WAM has reported.
The Dubai firm operates the Chekelen complex in the East Caspian Sea in Turkmenistan. It is its main producing asset consisting of major offshore oil and gas fields.
Over its 22-year work in the country, Dragon Oil has invested $8.1 billion on wells drilling and setting up production facilities – producing around 437 million barrels of crude oil in two decades.
The contract extension is part of the company’s growth and expansion plans, particularly to increase production capacity to 300 thousand barrels per day by 2026 – compared to around 160 thousand barrels per day at present.
“The signing of this contract also marks a milestone in Dragon Oil’s journey in a sustainable strategic growth and within the plan to complete growth and expansion in its operating markets, including Turkmenistan, Egypt and Iraq, by continuing to intensify exploration work, develop fields and repair wells,” its chief executive officer Ali Al Jarwan said.
The company also operates production and exploration assets in Egypt, Iraq, Algeria, and Afghanistan.
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