Dragon Oil Plc boosts Cheleken oil production - Turkmenistan
Following the commencement of production from the Jeytun (Lam) A/123 development well, Dragon Oil, the operator of the offshore Cheleken contract area in the Caspian Sea, has reached new record production levels. Gross production from the contract area is now 40,038 bo/d and is set to climb higher as the Iran Khazar J/U, one of two rigs the company is currently using, has moved to spud a further development well, Jeytun (Lam) A/125 on the Jeytun (Lam) A platform. Dragon Oil also announced it has received support from the president of Turkmenistan for its strategy to increase oil production as well as plans for the utilization of the contract area’s gas resources estimated at 3.5 Tcf. In March 2007, Dragon Oil commissioned a new 50,000 b/d oil processing facility as the first phase of a project that will ultimately include both processing and storage capacity, and will allow Dragon to double the production level. The second phase of the project should be completed around 2010. Dragon plans to spend around US$ 500 million between 2007 and 2009 on infrastructure development, which includes several new production platforms, upgrade of offshore facilities, new pipelines and enhanced export capability.
This article is extracted from International Oil Letter, Vol 24 issue 2, published 14 January 2008.
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