DRAGON OIL
TURKMENISTAN - THE CHELEKEN CONTRACT AREA
The Cheleken Contract Area covers approximately 950km² and comprises two offshore oil and gas fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov), in water depths of between eight and 42 metres. The fields comprise two elongate anticlines situated at the eastern end of the prolific hydrocarbon Aspheron Ridge.
Dragon Oil holds a 100% operatorship in the Cheleken Contract Area.
Under the Production Sharing Agreement, Dragon Oil (Turkmenistan) Ltd, as operator, was granted a production licence for the exploration and development of oil and gas resources in the Cheleken Contract Area for a term of 25 years from 1 May 2000 and an exclusive right to negotiate an extension of not less than 10 years. Dragon Oil (Turkmenistan) Ltd is a 100% subsidiary of Dragon Oil plc.
We have invested significant funds in expanding the oil production in the Cheleken Contract Area, and as such, we are one of the largest foreign investors in Turkmenistan. The Group is producing from a significant number of new and old wells.
We employ over 2,000 employees of whom the majority are working in Turkmenistan and are Turkmen nationals. About 200 employees are based in Dubai and provide administrative and technical support to our operations on the ground. Dragon Oil’s employees come from all over the world and have diverse cultural, educational and technical backgrounds. We are proud to maintain a culture of promoting diversity in our approach to hiring and developing our human resources.
Dragon Oil, through its wholly owned subsidiary Dragon Oil (Turkmenistan) Ltd, is the operator of the Cheleken Contract Area under a Production Sharing Agreement (PSA), which was signed in November 1999 and became effective in May 2000.
The PSA is between the State Agency for the Management and Use of Hydrocarbon Resources at the President of Turkmenistan (the “State Agency”) and Dragon Oil (Turkmenistan) Ltd. The State Agency is the primary Turkmenistan Governmental authority responsible for overseeing and approving matters relating to the PSA. Dragon Oil was granted a production licence for the exploration and development of the oil and gas resources in the Cheleken Contract Area for a term of 25 years, effective 1 May 2000. The Company, during the term of the PSA, has the exclusive right to negotiate with the State Agency for the extension of the base term of the production licence for a period of not less than 10 years.
Pursuant to the PSA, Dragon Oil has the right to explore for and the obligation to develop oil and gas resources in the Cheleken Contract Area. Dragon Oil is obliged to provide the capital and expertise, subject to prescribed rights of cost recovery. Under the PSA terms, the oil and gas recovered is shared between the parties by reference to the level of production at a given time.
The Cheleken Contract Area covers approximately 950 square kilometres and comprises two offshore oil and gas fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov), in water depths of between eight and 42 metres. The fields comprise two elongate anticlines situated at the eastern end of the Aspheron Ridge. The Aspheron Ridge is a prolific hydrocarbon play extending from the Apsheron Peninsula in Azerbaijan to the Cheleken Peninsula in Turkmenistan and divides the South Caspian Basin from the Middle Caspian Basin. The eastern boundary of the Cheleken Block is coincident with the landfall at Khazar and the western block boundary extends up to 40km offshore.
The 3-D seismic survey was acquired in 2004-2005; the interpretation was completed, while continuous additional studies and refinement are ongoing.
The Dzheitune (Lam) field is located to the South-West of Zhdanov field. Since the commencement of the Production Sharing Agreement in 2000, Dragon Oil has drilled over 100 new wells and a number of sidetracks from existing wells on the Lam field, constructed and installed a number of new wellhead and production, accommodation and tie-in platforms with plans to award contracts for construction and installation of a number of new platforms in the next few years, refurbished and upgraded existing platforms and performed many successful workovers.
- First well drilled in 1967
- First production in 1978
The Dzhygalybeg (Zhdanov) field is located to the North-East of the Lam field. The initial exploration and prospecting of the Zhdanov structure began in 1965. The first well with commercial oil and gas was drilled in 1966. The field has produced oil and gas from a series of numerous, stacked early to middle Pliocene Red Series sandstone reservoirs. Dragon Oil has completed a number of successful workovers in the Zhdanov Field and installed its first new platform, Zhdanov A. Drilling from this platform commenced in 2014.
- First well drilled in 1966
- First production 1972
One of our strategic objectives is development of the Cheleken Contract Area. Our field development plan calls for the phased installation of offshore and onshore infrastructure, including additional wellhead platforms together with all related in-field pipelines.
Current major projects performed by our contractors include:
- Laying of new subsea pipelines;
- Plugging, abandonment and decommissioning of old non-producing wells and non-producing platforms;
- Geophysical and geotechnical surveys to evaluate sites for future platforms and gathering stations;
- Engineering, procurement, installation and construction platforms and other facilities.
If you are interested in working with Dragon Oil on construction and supply projects, please contact the Contracts Department
