Turkmenistan offers Emirati Dragon Oil to expand cooperation in oil & gas field
President of Turkmenistan Serdar Berdimuhamedov received Chairman of the Board of Directors of Dragon Oil (UAE) S. Al Tayer, says newspaper Neutral Turkmenistan, News.az reports.
During the meeting, S. Berdimuhamedov and S. Al Tayer discussed the possibilities of expanding partnership, taking into account the accumulated experience of joint work and Turkmenistan's plans to develop the fuel and energy complex ( FEC ).Among the priority tasks for the development of the Turkmen FEC, the following was noted: increasing the volume of production and processing of oil and natural gas , increasing exports of Turkmen energy resources and finished oil and gas chemical products.
S. Berdimuhamedov emphasized the UAE's rich experience in the fuel and energy sector, noting with satisfaction that Turkmenistan has accumulated positive experience of cooperation with leading UAE companies in this sector.
The head of state stated the Turkmen side's readiness to consider specific proposals from Dragon Oil aimed at expanding cooperation, drawing attention to the dynamic development of Turkmenistan's fuel and energy sector, major plans for its development and favorable conditions for foreign business.
Having thanked for the high level of trust, S. Al Tayer assured that the company he heads will continue to make every effort to clearly and strictly fulfill its contractual obligations.
Dragon Oil has been present in Turkmenistan since 2000.
The company has been operating in the Çeleken contract area in the eastern sector of the South Caspian Basin since May 2000 under a production sharing agreement ( PSA ).
The total area of the Cheleken contract area is approximately 950 km2 and includes the Dzheitune, Jigalybek and Chelekenyangummez fields . The company invested approximately US$8.1 billion in the project, achieving a cumulative production of 437 million barrels of oil. In July 2022, Turkmenistan and Dragon Oil extended the PSA for the Cheleken block until 2035, with the updated agreement starting in May 2025. The value of the updated partnership will be US$1 billion, half of which Dragon Oil will pay in cash, with the remainder to be distributed over the next 13 years. In December 2023, Dragon Oil opened its new office in Ashgabat, which confirms the company's focus on expanding its presence in the country.
In February 2024, Dragon Oil announced that it was commencing exploration work in the Turkmen sector of the Caspian Sea, which includes three new oil fields in Block 19, located near the Cheleken Block .
Earlier, S. Al Tayer said that a 3D seismic survey worth $35 million was conducted at Block 19, which confirmed the prospects of the block.
Dragon Oil, among its strategic plans, is considering expanding oil production capacities in Turkmenistan, along with entering the blue hydrogen market by 2029 and developing renewable energy sources (RES).
The company expects that Turkmenistan will make a significant contribution to the planned growth in oil production.
As of the end of 2023, Dragon Oil produced 180 thousand barrels per day of oil and expects to increase the figure to 250 thousand barrels per day by the end of 2025.
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