Dragon Oil (Turkmenistan) Ltd. will accelerate the development of the Turkmen shelf of the Caspian Sea in the “Cheleken” contract area on the basis of the Production Sharing Agreement. This is provided by the contract, which is planned to be signed between this company and the State Concern “Turkmenneft”.
Focusing on the need for a thoughtful and comprehensive approach to solving all the problems in this area, President Serdar Berdimuhamedov at a government meeting on Friday approved the proposal, instructing Deputy Prime Minister Shahym Abdrahmanov, who is in charge of the fuel and energy complex, to continue work in this direction, reports the “Neutral Turkmenistan” newspaper today.
The main activity of Dragon Oil is focused on the development of the Jeytun and Jygalybeg oil fields (Cheleken contractual territory of the Turkmen shelf of the Caspian Sea), where it has been successfully operating since May 2000. During this period, Dragon Oil has invested more than 8 billion USD.
The PSA has a 25-year term expiring in May 2025, with the exclusive right of Dragon oil (Turkmenistan) LTD to negotiate a further extension of the agreement for a period of no less than 10 years.