The company “Dragon Oil” - Turkmenistan: the positive experience of cooperation

An important aspect of energy policy, consistently implements by the President of Turkmenistan Gurbanguly Berdimuhamedov, is the development of hydrocarbon resources of the Caspian Sea, entered in the world register of the largest oil and gas reserves. In the next decade, offshore and in the coastal zone is scheduled to receive a significant increase in the production of "black gold" and "blue fuel", which will give a powerful impetus to the further dynamic development of the national economy, the process of industrialization of the country.

Currently, the Turkmen sector of the Caspian Sea, total reserves of which are estimated by experts to 18.2 billion tons of standard coal, operates by a number of world-renowned companies. Among them - the company “Dragon Oil” (United Arab Emirates), which is developing fields included in the Contract Area “Cheleken”.  The general manager of Dragon Oil (Turkmenistan) Ltd. Faisal Al Awadi Rabi said to newspaper “NEBIT-GAZ” (“Oil and Gas”) about experiences and prospects of mutually beneficial cooperation in the energy sphere.

- At the end of September in the British capital London hosted the two-day forum "Oil and gas of Turkmenistan - investment opportunities", organized by the State Agency on Management and Use of Hydrocarbon Resources at the President of Turkmenistan. The agenda of the meeting, which was attended by representatives of the world's major oil and gas companies, includes issues related to the conditions for attracting foreign investments into the fuel and energy complex of Turkmenistan, licensed blocks development of the Turkmen section of the Caspian Sea, the project of construction of transnational gas pipelines. How do you assess the potential of our country in the global energy market?

- We see a tremendous opportunities for the active participation of Turkmenistan in the international energy dialogue. Almighty Allah has given his blessing to Turkmenistan in many ways, one of which is the hydrocarbon resources. Turkmenistan holds the 4th place in the world in terms of proven natural gas reserves, it is strategically located between East and West, has a favorable geographic proximity to countries such as China, India and Indonesia, which account for more than 50 percent of the world of the young and growing population. Growth in gross domestic product (GDP) of these three countries increased by an average of 34 percent from 2008 to 2012, they produce a wide range of commercial products, which are in demand worldwide.

To continue to maintain high rates of economic growth, countries of this region need clean energy, that is, natural gas. And who, if not Turkmenistan, can best help meet the needs of these countries for energy?

- By implementing a comprehensive strategy to modernization of the national fuel and energy sector and diversify the routes of its energy resources to world markets, Turkmenistan is aimed at strengthening mutually beneficial international cooperation with representatives of foreign business circles. Your company has long been working on the Turkmen market, what are the results of this partnership?

- “Dragon Oil” experience can serve as a positive example for many potential partners of Turkmenistan - both foreign investors and oil companies of high technology and interested in cooperation in the development of rich hydrocarbon resources in the Turkmen sector of the Caspian Sea.

Let me remind you that in accordance with the terms of the Production Sharing Agreement, the company “Dragon Oil (Turkmenistan) Ltd.” as an operator has received a license to develop and produce oil and gas in the Territory "Cheleken" for 25 years, starting from May 1, 2000 as well as the exclusive right to extend the license for another 10 years.

The company “Dragon Oil (Turkmenistan) Ltd.” is a subsidiary of «Dragon Oil plc», whose headquarters is located in Dubai - the largest trade and financial center of the United Arab Emirates and the Middle East at all. The owner "" Dragon Oil plc is the company "Emirates National Oil Company L.L.C" (ENOC), founded by the Government of the Emirate of Dubai. Our company also has a license to develop blocks in Tunisia, Iraq, Afghanistan, Egypt, Algeria and the Philippines.

The Contract Area “Cheleken”, located in the east of the South Caspian Basin, including Jeitun and Djugalybeg deposits that are near the Hazar town. Proven and probable reserves of oil and condensate as of December 31, 2014 are accounted for 675 million barrels, gas reserves - 1.3 billion cubic feet.

Over the past 15 years the company has invested in the modernization of oil and gas infrastructure of Contract Area more than 4.8 billion US dollars. In particular, it carried out major repairs of old and new drilling, construction maintenance fixed offshore platforms, underwater pipelines. The Oil terminal “Aladja” was renovated and re-built in fact. This made it possible simultaneous loading of two tankers, which increased export opportunities for the company. Built-gathering station designed for preparation, storage and shipment of commercial oil, mechanical workshops, which made repair automobile, tractor, lifting equipment and oil equipment, sea water desalination plant, as well as other facilities.

As a result, the average daily production from the Contract Area “Cheleken” increased from about 7000 barrels in 2000 to more than 100,000 barrels of oil in 2014. Currently, 8 new storage tanks with a total capacity of 160,000 barrels are under construction. The company “Dragon Oil” intends to continue to pursue an active investment and science and technology policy, aimed at to preserve the current level of production for at least five years, including through the introduction of advanced technologies. Particular attention is paid to the preservation of the ecological situation in the safe zone of the Caspian Sea. The company carries out oil works, strictly observing the legislation of Turkmenistan in this area.

The company employs more than 2 000 employees and is represented by citizens of over 50 countries. At the same time, more than 90 percent of employees are citizens of Turkmenistan. In the Hazar town opened a training center, which provides training and retraining of the technical staff of the company. Specialized classes and gyms of the center are equipped with special equipment for the professional training of crane operators, drillers, operators and repairmen wells, training stands and visual aids. Over the past 2 years in training and professional development of our employees, including those in the United Arab Emirates, Russia, Malaysia, and countries in Europe, we have invested more than 3, 5 million dollars.

With the active assistance of the “Dragon Oil” company implemented construction project  of the City Hospital in the Hazar town. The City Hospital has a modern medical equipment. The company regularly provides sponsorship in the organization of cultural and sporting events. For example, each year jointly with the Hazar City Sport Committee we hold open championship of the “Dragon Oil” Cup for volleyball, basketball, boxing and soccer. With our sponsorship the youth volleyball team of the Hazar participated in Bulgaria XI International Youth volleyball tournament "Black Sea 2015", which took honorable third place.

I want to emphasize that all these years the company “Dragon Oil” works in close cooperation with the State Agency on Management and Use of Hydrocarbon Resources at the President of Turkmenistan, with the full support of the Government of Turkmenistan, for which we express our deep gratitude to the esteemed President of Turkmenistan Gurbanguly Berdimuhamedov.

- Thanks for the interview and wish you success.

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