This major capital expenditure is recoverable under the terms of the Company's Product Sharing Agreement ("PSA").
Once commissioned the trunkline will be capable of transporting all the oil and gas produced offshore from Dragon Oil's asset in the Cheleken Contract Area, in the Caspian Sea onshore to the Company's New Processing Facility ("NPF") based in the town of Hazar on the western coast of Turkmenistan.
As previously announced the company is currently tendering for up to four new jack-up rigs. It has received tenders for phase 2 of the NPF which will enable the facility to process up to 100,000 bopd and 180 mmscfd of gas and also for the Front End Engineering Design (FEED) for the gas monetisation project.
Hussain M. Sultan, Executive Chairman commented, "I am pleased to announce that we have awarded the contract for this important project as it is a major step towards securing future growth for Dragon Oil and its shareholders. Further major contracts shall be announced later this year."
The trunkline is a key element of our extensive capital expenditure programme, which will enable the Company to deliver on its promises to continuously increase oil production and monetise the gas resource in the Cheleken Contract Area."
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Dragon Oil awards contract for new trunkline
- United Arab Emirates: Monday, July 21 - 2008 at 14:44
- PRESS RELEASE
Dragon Oil plc, an international oil and gas exploration and production company announced that it awarded a $170m 15-month contract to Petro Gas FZE on 16th July 2008 for the engineering, procurement and installation of a new 30-inch, 39.4 km trunkline.
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Dragon Oil Plc is an innovative international oil and gas development and production company, quoted on the London and Irish Stock exchanges (Ticker symbol: DGO). Its principal producing asset is in the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan and recently acquired interests in Blocks 35, 49 and R2 (10%) in the Republic of Yemen.Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil plc, holds 100% interest in and is the operator of the Production Sharing Agreement for the Cheleken Contract Area in the Caspian Sea, offshore Turkmenistan. Operational focus is on the re-development of two oil producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).
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Posted by Medilyn Manibo, Assistant News EditorMonday, July 21 - 2008 at 14:44 UAE local time (GMT+4)
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