Dragon Oil

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Overview

With its principal producing asset the Cheleken Contract Area in the eastern Caspian Sea, Dragon Oil Limited is the exploration and production platform of the ENOC group.

The sizeable Cheleken Contract Area block covers approximately 950 square kilometres and comprises two offshore oil and gas fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).

Dragon Oil enjoys a 100 per cent operatorship in the block and has been developing it under a production sharing agreement active since 2000, with drilling beginning in the 1960s followed by first production towards the end of the 1970s.

Operations in the block are considerable, with Dragon Oil having successfully drilled more than a hundred new wells in the Dzheitune (Lam) field since the inception of the production sharing agreement in 2000. Four new wellhead and production platforms have been constructed and installed, as well as two accommodation and three tie-in platforms, and further works include refurbishment and upgrading of existing platforms and several workovers.

The Dzhygalybeg (Zhdanov) structure underwent initial exploration and prospecting in 1965, and the first well with commercial oil and gas was drilled in 1966. A number of successful workovers has since been completed by Dragon Oil, alongside the installation of a new wellhead and production platform. Drilling commenced in the field in 2014.

Dragon Oil's crude oil export entitlement is currently marketed via Baku in Azerbaijan and Makhachkala in Russia. Representing a substantial increase on the previous year and an impressive 13-fold increase from 2000's gross production level of 7,000 bopd, 2015's gross production from the Cheleken Contract Area was close to 95,000 bopd. Furthermore, mid-year - for the first time - production also hit the 100,000 bopd mark.

Looking to the future, Dragon Oil is committed to continuing its success through ongoing development. Current exploration assets include Iraq, Algeria, Tunisia, Afghanistan and Egypt, and oil production has now begun from the platform's latest development, the Faihaa-1 well in Iraq. Located in the southern region of Basra, in what is considered to be the heart of the oil industry in Iraq, production from the well is already at around 5,000 bopd.

In another exciting development, Dragon Oil and its partners in Algeria are currently undergoing interpretation of existing 3D seismic data as part of the exploration of two onshore blocks, situated close to previously undeveloped discoveries.

Alongside its impressive development and production record, Dragon Oil is also rightfully proud of its active Corporate Social Responsibility programme. Commitment to CSR is taken seriously, and some US$10 million each year is currently channelled to community development projects in Hazar, its neighbouring towns and further afield in Turkmenistan.

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