Dragon Oil to invest at least $8 bln in projects in Turkmenistan over 15 years
ASHGABAT. April 26 (Interfax) - Dragon Oil intends to invest at least $8 billion in projects in Turkmenistan over the next 15 years, Sheikh Ahmed Bin Saeed Al Maktoum, Deputy Chairman of the Dubai Executive Council, said at an international forum on foreign investment in Turkmenistan's oil and gas industry.
Dragon Oil has already invested more than $8 billion in a project to develop oil fields in Turkmenistan over more than 23 years of joint work, according to Turkmenistan's Orient news agency. "And we are ready to invest at least as much in the next 15 years," the Sheikh said.
He said the transformation of the energy sector and support for Turkmenistan's initiative for the transition to renewable energy sources were areas where Arab businesses could be most active. The UAE has a wealth of experience in the application of solar, nuclear, hydrogen and other alternative energy models.
The reforms in Turkmenistan, and amendments to national legislation are broadening investment cooperation considerably since investors think primarily about return on investments and the transfer of intellectual assets, he said, adding that important steps have been taken in this area recently for business development and efficiency.
Dragon Oil is a subsidiary of Emirates National Oil Company (ENOC), which is registered in Ireland and headquartered in Dubai, the United Arab Emirates. The company is engaged in oil and gas exploration, development and production.
In the summer of 2022, Turkmenneft and Dragon Oil extended the production sharing agreement for the Cheleken area of the Caspian Sea for 10 years. Under the PSA signed in 2000, which expires in 2025, Dragon Oil is developing the Dzheitune and Dzhygalybeg oil fields in the area. During this period, the company has invested over $8 billion into the project.
The extensive modernization and development of these fields has boosted average daily hydrocarbon output more than 10-fold from 7,000 barrel to 80,000 barrels. The company aims to be producing a steady 100,000 barrels per day by 2025.
