Capex Data
Dragon Oil expects to spend in the region of US$500m between 2007 and 2009 on infrastructure development, which includes several new production platforms, upgrade of offshore facilities, new pipelines and enhanced export capability.
Future Plans
• Accelerate 2008 development programme subject to rig availability
• Significant infrastructure renewal and upgrade ongoing in Cheleken
• Ongoing discussions and facility planning for gas utilisation and commercialisation
• Exploration drilling ongoing in Yemen following the December 2007 farm-in agreement
• Pursue value-adding assets, further diversifying Dragon Oil’s portfolio
Turkmenistan
The CIS 1 Rig completed the Dzheitune (Lam) 22/124 well on 9th January 2008 with initial production from the two strings of 2,414 bopd with optimisation of the well to follow. The CIS Rig is preparing to drill its second development well, L22/126. In addition, the Company is continuing to refurbish its own drilling rig, Rig 40, for the commencement of drilling operations from the refurbished Dzheitune (Lam) 13 Platform.
Dragon Oil continues the major infrastructure development programme, which includes the construction of additional wellhead platforms, expansion of the NPF, refurbishment of the crude oil export jetty and continued upgrade of existing infrastructure.
In line with its commitment to commercialise the gas resources within the Cheleken Contract Area, Dragon Oil has completed feasibility and design studies. Subject to the necessary approvals, the Company plans to install new offshore and onshore facilities, which will include a 30-inch offshore trunk pipeline to transport the gas and oil onshore. Discussions with the Government of Turkmenistan are ongoing.
Yemen
An exploration drilling programme on our non-operated acreage in Yemen is currently underway with drilling taking place in Blocks 49 and R2. Drilling will commence on additional prospects in Block 35 once drilling has been completed in Blocks 49 and R2.