Petro Gas to install Caspian trunkline for Dragon

Dragon Oil Plc has awarded a contract to Petro Gas FZE to engineer, procure, and install a new 30-in (76-cm), 39.4-km (24.5 mi) trunkline.

Offshore staff

DUBAI, UAE -- Dragon Oil Plc has awarded a contract to Petro Gas FZE to engineer, procure, and install a new 30-in (76-cm), 39.4-km (24.5 mi) trunkline.

The contract is for a 15-month period at a total of $170 million.

The trunkline will be capable of transporting all oil and gas produced offshore from Dragon's asset in the Caspian Sea Cheleken contract area to the company's new processing facility based in the western coast town of Hazar, Turkmenistan.

"The trunkline is a key element of our extensive capital expenditure program, which will enable the Company to deliver on its promises to continuously increase oil production and monetize the gas resource in the Cheleken contract area," says Hussain Sultan, executive chairman.

Dragon currently is tendering for up to four new jackup rigs. It has tenders for the front end engineering design for the gas monetization project, and for phase 2 of the production facility, which will enable the facility to process up to 100,000 b/d of oil and 180 MMcf/d (5.1 MMcm/d) of gas.

07/21/2008

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