The Turkmen state oil and gas company Napeco has acquired a 5%-stake in the production sharing agreement (PSA) of Dragon Oil for the Cheleken field in the Caspian Sea, Argus Media reports.
The deal was concluded on the sidelines of the Oil and Gas of Turkmenistan -2022 conference in Ashgabat, Napeco CEO Maksat Pirliev said.
In July of this year, Turkmeneft and Dragon Oil (Turkmenistan) Ltd extended the contract for oil production at Cheleken until 2035.
Napeco participates in two other projects together with foreign investors. These include a PSA with Mitro International at the Eastern Cheleken field, which operates until 2025, and a 10% stake in the project with Italian Eni at the same field as a contractor.
For trading operations, Napeco has established a joint venture with Vitol, which is engaged in the trade of crude oil, gasoline, gas condensate, heavy oils and bitumen.
Although the petroleum products are also sold through the State Commodity Exchange, according to Pirliev, in most cases, the selling through a joint venture is more profitable. Prices for petroleum products are based on a discount to Brent and are sold on FOB terms from the Caspian region, the source explains.
According to the Napeco CEO, the main route for the sale of Turkmen crude oil and petroleum products runs through Azerbaijan, and part of the supplies are sent to Europe through Georgia.
Answering the question about the prospects of exporting oil and petroleum products via Iran, Pirliev said that it is difficult to consider this option now, but it is possible if sanctions are lifted.///nCa, 2 November 2022