Dragon Oil sells 2% less oil in H1
MOSCOW. July 17 (Interfax) - Dragon Oil, which is developing the offshore Cheleken block in Turkmenistan's sector of the Caspian Sea, sold 5.7 million barrels of crude oil in the first half of this year, 2% less than in H1 2012, the company reported.
The "decrease in the volume sold over the comparable period is due to lower entitlement and change in the lifting position. In H1 2013, Dragon Oil exported 100% (H1 2013: 100%) of its crude oil production through Baku, Azerbaijan," the company said. The average price was $86/barrel ($102 in H1 2012).
"For H1 2013, the gross field production averaged 73,600 bopd [barrels of oil per day] (1H 2012: 64,200 bopd) at observed temperature representing an increase of 15% over the comparable period. With six wells, including one sidetrack, completed as well as the introduction of an artificial lift in two wells, the average production from the existing and new wells has been holding steadily at above the December 2012 exit rate of 73,500 bopd," Dragon Oil said.
"Capital expenditure for H1 2013 was approximately $149 million (H1 2012: $208 million). Of the total capital expenditure, approximately 37% (H1 2012: 54%) was attributable to infrastructure with the balance spent on drilling including exploration expenditure in Tunisia," the company said.
"On March 2, 2013, Nigel McCue stepped down from the board of directors of the company. Mr. McCue had served on the board of the company for more than 10 years having been appointed in April 2002. He had also served as the senior independent non-executive director. Thor Haugnaess has temporarily assumed the role of senior independent non-executive director. The board is searching for an additional independent director," Dragon Oil said.
Dragon Oil is working the contract territory of Cheleken in Turkmenistan's sector of the Caspian Sea under a production-sharing agreement signed with the Turkmen government in 1999. Cheleken features two major deposits - Dzheitune (former LAM) and Dzhygalybeg (Zhdanov).
Dragon Oil is registered in Ireland and headquartered in Dubai. The controlling stock interest in the company belongs to Emirates National Oil Co., Ltd.