Dragon Oil, an oil and gas exploration and production company totally owned by the Government of Dubai, has renewed the Production Sharing Agreement (PSA) in Turkmenistan with the state-owned company Türkmennebit (Turkmen Oil) for a period of ten additional years, Dragon Oil announced in its Monday press release.
Under the contract, the existing PSA between the parties was extended until 2035. The earlier PSA was signed for 25 years and expires in May 2025.
The company is the operator of the Cheleken Contract Area under a PSA, which was signed in November 1999 with Turkmen Government. The company started its operations in Turkmenistan in 2000.
Over a 22-year period, Dragon Oil has spent $8.1 billion on wells drilling and setting up the appropriate production facilities in Turkmenistan. It’s cumulative production in Turkmenistan over the past period has reached 437 million barrels of crude oil.
Dragon Oil’s investments, during the contract extension period, are expected to reach another $7-8 billion. An additional 350 million barrels are expected to be produced until the year 2035, with a daily production rate of 60-70 thousand barrels.