Dragon Oil Company, owned by the government of Dubai, has signed a Memorandum of Understanding with the State Concern Turkmennebit (Turkmen Oil), the UAE’s official news agency WAM reports. The agreement provides for the expansion of Dragon Oil Company’s investments in the promising oil and gas sector of Turkmenistan, which includes three new oil fields located in Block 19 in the Turkmen sector of the Caspian Sea.
The document was signed following a meeting between the National Leader of the Turkmen people, Chairman of the Khalk Maslahaty of Turkmenistan Gurbanguly Berdimuhamedov and Saeed Mohammed Al Tayer, Chairman of the Board of Directors of Dragon Oil.
The memorandum was signed by the Director General of the company Ali Rashid Al-Jarwan from the Emirati side and the chairman of the State Concern Turkmennebit Agajanov Guvanch from the Turkmen side.
Al-Tayer noted: “Signing the memorandum of understanding with Turkmenistan reflects the great confidence that the company enjoys with the government of Turkmenistan, whose presence in this hospitable country dates back more than 20 years.”
“The company is moving to expand investment in three oil fields with the aim of raising and increasing production in the near future. Turkmenistan is a very important oil country and has great oil and gas capabilities. We are seeking to strengthen our presence there through new investments that will reflect positively on both parties on the one hand, Enhancing the state’s income from revenues and creating new work jobs, especially since the company counts more than 2,000 employees in Turkmenistan alone,” he said.
Al-Tayer explained that the memorandum will allow the company to transfer technologies to Turkmenistan in the oil sector. At the same time, the company will make technical and financial investments in the development of fields covered by the memorandum.
According to him, a seismic survey worth US $ 35 million was conducted at block 19, which confirmed the prospects of the block. It includes three new deposits near the Cheleken field.
Al-Tayer noted that the next stage after the signing of the agreement will be the drilling of two or three wells, while the third stage provides for developing production when exploring for oil.
Dragon Oil has been cooperating with Turkmenistan in the oil and gas sector on the basis of a production sharing agreement since 2000. The company’s main focus is on the extraction of hydrocarbon resources in the Caspian Sea, in the Cheleken contract area. ///nCa, 7 January 2024