Dragon Oil Expands Investments in Turkmen Oil and Gas Sector Through New MoU

Dragon Oil Expands Investments in Turkmen Oil and Gas Sector Through New MoU

By Emirates News Agency, 07 January 2024

Dragon Oil Company, wholly owned by the Government of Dubai, signed a Memorandum of Understanding (MoU) with Turkmenbet Company (Turkmenistan Oil).

The agreement included expanding Dragon Oil Company’s investments in the promising Turkmen oil and gas sector, which includes three new oil fields within Block 19.

The signing of the agreement was attended by Gurbanguly Berdimuhamedow, Chairman of the People's Council of Turkmenistan; Meredov Rashid, Deputy Chairman of the Council of the Minister of Foreign Affairs; Amanov Batyr Amanglidievich, Deputy Chairman of the Council of Ministers of Turkmenistan; Biglev Acherguli, Advisor to the President of Turkmenistan on Oil and Gas Issues; Babayev Maksat Mamitsaparovich and Agaganov Jovansh, Head of the Service.

Also present from the UAE side were Saeed Mohammed Al Tayer, Chairman of the Board of Directors of Dragon Oil; Ahmed Al Hai Al Hameli, UAE Ambassador to the Republic of Turkmenistan; Ali Rashid Al Jarwan, CEO of Dragon Oil; and Saeed Salem Al Shamsi, General Manager of Marketing and Government Communications, Dragon Oil Company.

Read More: Al Wasl Field Activation: Dragon Oil's Milestone in Egyptian Oil Production

At the beginning of the meeting, Saeed Al Tayer, welcomed the presence of the Chairman of the People's Council of Turkmenistan and conveyed the greetings of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai. During the meeting, he also thanked the Turkmen government for supporting the company over the years and also praised For the wise leadership and support for the company’s various projects.

On the sidelines of the signing, the Chairman of the People's Council of Turkmenistan met with the Chairman of the Board of Directors of Dragon Oil Company. During the meeting, the two sides discussed ways to further enhance bilateral cooperation and explore the possibilities of advancing the energy sector and oil and gas industry in Turkmenistan, given Dragon Oil's extensive experience and notable achievements in these areas.

Gurbanguly Berdimuhamedow extended his thanks and great gratitude to Dragon Oil Company for its support of the Turkmen health sector with health equipment and medicines, especially during the COVID-19 pandemic, as the company provided about 19 ambulances and three clinics equipped with all medical equipment intended for Covid patients, in addition to the clinics it provided. Integrated in the company's fields to serve its employees.

Al Tayer said, “Signing the memorandum of understanding with Turkmenistan reflects the great confidence that the company enjoys with the government of Turkmenistan, whose presence in this hospitable country dates back more than 20 years.”

Al Tayer added, “The company is moving to expand investment in three oil fields with the aim of raising and increasing production in the near future. Turkmenistan is a very important oil country and has great oil and gas capabilities. We are seeking to strengthen our presence there through new investments that will reflect positively on both parties on the one hand, Enhancing the state’s income from revenues and creating new work jobs, especially since the company counts more than 2,000 employees in Turkmenistan alone.”

Touching on the agreement, Al Tayer explained that the memorandum will enable the company to transfer technology and modern technology in the oil sector while making technical and financial investment to develop the fields covered by the memorandum, pointing out that the memorandum is only the first of the excellent relations that we have brought together with Turkmenistan.

Al Tayer stated that Block 19 includes the three new fields close to the Chelken field in which we operate the concession, where we conducted a seismic survey at a cost of US$35 million, and the results of the analysis we conducted showed that Block 19 is promising, adding, “Our expansion plans in Turkmenistan are located in An area close to the Chilken field is a promising area, and we know it well.”

He pointed out that the next stage after signing the goodwill agreement is to drill two to three wells, while the third stage is the stage of developing production when exploring for oil.

At the end of the meeting, the agreement was signed on the Emirati side by Ali Rashid Al Jarwan, CEO of the company, and Aghajanov Jovansh, Head of the State Administration “Turkmenneft” on the Turkmen side.

Dragon Oil has been engaged in oil and gas cooperation with Turkmenistan on the basis of a production sharing agreement since 2000. Its primary focus is on the extraction of hydrocarbon resources in the Caspian Sea, in the Chilikin Contractual Area.

Hazem Hussein / Muhammad Aamir / Khoder Nashar

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