News

June 03, 2009

Dragon Oil Continues To Push Ahead In Turkmenistan As Continuous Drilling Delivers More Barrels

Dragon Oil continues to make solid progress in Turkmenistan, where it is busy drilling on its oilfield redevelopment projects in the Cheleken Contract Area in the eastern section of the Caspian Sea. This work programme is set to deliver a steady stream of newsflow as the company continues to make good progress towards meeting its target of eight wells by year-end.

This Soviet-era project covers 950 sq km and lies in shallow waters, no more than 50 metres deep. There is plenty of potential here, with proved and probable reserves of 645 million barrels of oil and condensate (Dragon’s share comes to 283 million barrels and 3.2 trillion cubic feet of gas) lying in two fields, Dzheitune (LAM) and Dzhygalybeg (Zhdanov).

These are impressive numbers but extracting value from these reserves isn’t straightforward.  The company, backed by Middle...