Dragon Oil and Turkmenneft extended the Production Sharing Agreement for 10 years

On June 30, the Arab oil company Dragon Oil and the Turkmen state concern Türkmennebit (Turkmenneft) signed an agreement to extend the Production Sharing Agreement (PSA) for 10 years - until May 1, 2035, the specialized Turkmen publication Nebit-Gaz reports .

Help HT . A production sharing agreement, or PSA, is an agreement under which a foreign company obtains a license to extract natural resources (if the state itself does not have the necessary technologies), which are then divided between the investor and the host state.

The document was signed by Chief Executive Officer of Dragon Oil Ali Al Jarvan and Chairman of Türkmennebit Group of Companies Guvanch Agadjanov .

For the first time, the PSA between the companies was signed on May 1, 2000 for a period of 25 years, that is, its term expires in three years - on May 1, 2025.

According to Agadzhanov, President Serdar Berdimuhamedov instructed to increase the production and processing of oil and gas, as well as the export of Turkmen energy resources and finished oil and gas chemical products. In order to fulfill this task, it is planned to accelerate the development of the Turkmen shelf of the Caspian Sea in the next 10 years, in particular, at the Cheleken field in the contract area .

“Today, Dragon Oil's main activity under this PSA is the development of the Jeytun and Dzhigalybeg oil fields, where it has been operating since May 2000. During this period, the company has invested more than 8 billion US dollars in the project,” the statement says.

It is also reported that during the work of the company from the UAE in the fields, the existing and built 5 new operational fixed offshore platforms, three hub platforms and two residential blocks. Dozens of new wells were put into operation. Jack-up rigs "ELIMA", "NEPTUNE" and "Caspian Driller", as well as rigs "SAKSON" and "NIS" mounted on fixed offshore platforms are involved in drilling operations.

As the newspaper writes, thanks to the cooperation of the companies, the average daily oil production was increased from 7 to 80 thousand barrels, and by 2025 it is planned to increase to 100 thousand.

Two days before the signing of the document, on June 28, the UAE Ambassador to Ashgabat, Ahmed Al Hay Al Hameli, met with Batyr Atdaev , Vice Prime Minister of the Turkmen government for trade issues , with whom he discussed the possibility of holding the UAE-Turkmenistan Business Council in the UAE , as well as investment opportunities for representatives of the Emirati business in Turkmenistan.

On June 25, Deputy Prime Minister of Turkmenistan Shahym Abdrakhmanov , who is in charge of the oil and gas sector, reported to President Serdar Berdimuhamedov on plans for joint work with Dragon Oil (Turkmenistan) Ltd. on the accelerated development of the Turkmen shelf of the Caspian Sea, in particular, in the Cheleken contract area on the basis of the Production Sharing Agreement.

Separately, the Deputy Prime Minister noted the terms of the contract to be signed between this company and the Türkmennebit concern. These conditions, however, TDH did not disclose.

Source: Chronicles of Turkmenistan