Dragon Oil Company, wholly owned by the Government of Dubai, will begin exploring the first well in Turkmenistan’s Block 19 in December. This comes as part of the memorandum of understanding (MoU) signed with the State Concern Turkmennebit. The MoU also includes the expansion of Dragon Oil’s investments in the oil sector aimed at producing oil and gas from three new oil fields within Block 19 in the Turkmenistan Sector of the Caspian Sea.
Exchange of technical expertise
As part of the collaboration, both parties have agreed to exchange crucial technical information. Dragon Oil’s recent delegation visit to Turkmenistan solidified plans to acquire data on two wells, crucial for designing the exploratory well. Moreover, this exchange not only facilitates cost reduction but also streamlines the exploration process.
Sustainable development
The company is working on implementing multiple sustainable development projects, including stopping gas burning, reducing emissions, and an ambitious 10,000 tree-planting project at the operating site in Hazar and surrounding areas. These endeavors underscore Dragon Oil’s dedication to the Sustainable Development Goals and the outcomes of COP28.
Strengthening bilateral relations
The collaboration between Dragon Oil and Turkmenistan signifies a culmination of robust relations between the two countries. Dragon Oil’s technical delegation visited Turkmenistan to implement the terms of the MoU signed in Dubai in January. This step marks the continuation of a series of meetings between the governments of the two countries. Most recently, high-level meetings underscored the commitment of both governments to fostering strategic partnerships, particularly in the energy sector.
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Exploration and development plans
Ali Rashid Al Jarwan, CEO of Dragon Oil Company, outlined the strategic roadmap for exploration and development within Block 19. The initial exploration aims to assess carbonaceous materials in the oil and gas well. Notably, Block 19 has an area of 3,800 square kilometers. Moreover, preliminary data indicates that it contains a lot of carbonaceous materials.
After exploration, Dragon Oil will enter the field-testing phase and aim to extract 20,000 barrels per day of oil. If the initial explorations reveal an abundance of hydrocarbon materials, the company will come up with an integrated plan to develop the field. Finally, Al Jarwan stated that the exploration process will begin next December and continue for three months. With the examination, it will increase to four months, after which Dragon Oil will begin developing the field for the benefit of both parties.
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