Dragon Oil Signs MoU With Turkmenistan Oil To Expand Investments In The Turkmen Oil And Gas Sector
Dragon Oil Company, wholly owned by the Government of Dubai, has signed a Memorandum of Understanding (MoU) with Turkmenbet Company (Turkmenistan Oil). This agreement aims to expand Dragon Oil's investments in Turkmenistan's oil and gas sector, specifically targeting three new oil fields within Block 19.
The signing ceremony was attended by Gurbanguly Berdimuhamedow, Chairman of the People's Council of Turkmenistan; Meredov Rashid, Deputy Chairman of the Council of Ministers of Foreign Affairs; Amanov Batyr Amanglidievich, Deputy Chairman of the Council of Ministers; Biglev Acherguli, Advisor to the President on Oil and Gas Issues; Babayev Maksat Mamitsaparovich; and Agaganov Jovansh, Head of the Service.
From the UAE side, attendees included Saeed Mohammed Al Tayer, Chairman of Dragon Oil; Ahmed Al Hai Al Hameli, UAE Ambassador to Turkmenistan; Ali Rashid Al Jarwan, CEO of Dragon Oil; and Saeed Salem Al Shamsi, General Manager of Marketing and Government Communications at Dragon Oil.
During the meeting, Saeed Al Tayer welcomed the Chairman of the People's Council and conveyed greetings from His Highness Sheikh Mohammed bin Rashid Al Maktoum. He thanked the Turkmen government for its support over the years and praised its leadership in backing various projects.
On the sidelines of the signing, Berdimuhamedow met with Al Tayer to discuss enhancing bilateral cooperation and exploring opportunities in Turkmenistan’s energy sector. They highlighted Dragon Oil's extensive experience and achievements in oil and gas.
Support During COVID-19
Berdimuhamedow expressed gratitude to Dragon Oil for its support during the COVID-19 pandemic. The company provided 19 ambulances and three clinics equipped with medical equipment for COVID patients. Additionally, integrated clinics were set up in company fields to serve employees.
Future Investments
Al Tayer stated that signing the MoU reflects the confidence Turkmenistan has in Dragon Oil. The company plans to expand investment in three oil fields to increase production. Turkmenistan is a significant oil country with vast capabilities. New investments are expected to enhance state revenues and create jobs, with over 2,000 employees already in Turkmenistan.
Technological Advancements
The MoU will enable Dragon Oil to transfer modern technology to develop the fields covered by the agreement. Block 19 includes three new fields near the Chelken field. A seismic survey costing US$35 million showed promising results for Block 19.
The next stage involves drilling two to three wells, followed by developing production upon successful exploration. The agreement was signed by Ali Rashid Al Jarwan for Dragon Oil and Aghajanov Jovansh for Turkmenneft.
Long-standing Partnership
Dragon Oil has been cooperating with Turkmenistan since 2000 under a production sharing agreement. The company's primary focus is on extracting hydrocarbon resources in the Caspian Sea within the Chilikin Contractual Area.
With inputs from WAM
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