Cheleken fields reach production landmark

Dragon Oil has achieved a new peak of 50,000 b/d from its oilfields in the Turkmen sector of the Caspian Sea.

Offshore staff

ASHKABAD, Turkmenistan -- Dragon Oil has achieved a new peak of 50,000 b/d from its oilfields in the Turkmen sector of the Caspian Sea. The company has operated the Cheleken Contract Area fields since 2000.

During 2009, Dragon put into production eight wells in the Dzheitune (Lam) field. Installation of the Dzheitune (Lam) B platform was completed last month in the western part of the field, and shortly afterwards the jackup Astra spud the Dzheitune (Lam) B/141 development well from the platform. The rig is contracted for six months, and will likely drill two wells during this term.

Also in December, Dragon awarded a two-year contract to Naftna Industrija Srbije (NIS) Naftagas for lease and management of the land rig NIS Rig on its offshore concession. The rig is currently being installed on the Dzheitune (Lam) 28 platform, which was recently refurbished to accommodate the new program. Nis Rig should shortly start drilling the first of seven planned development wells from the platform.

Last year, Dragon incurred capital expenditure of around $317 million, up from $287 million in 2008. Infrastructure investment included construction and installation of the Dzheitune (Lam) B platform; a new 30-in. (76-cm), 40-km (24.8-mi) offshore trunkline; the Phase 2 expansion of the central processing facility; and upgrades to the Dzheitune (Lam) 63 platform and Phase 2 of the Aladja Jetty.

Currently, the Astra, the Iran Khazar jackup and the platform-based Rig 40 are drilling development wells in the Dzheitune (Lam) field, respectively wells B/141, A/142, and 13/143. All should be put into production around the end of this quarter.

Rig 40 is due to complete two wells during the first half of the year, and thereafter will also participate in a workover campaign to enhance production from existing wells on the Dzheitune (Lam) 13 platform. In total, Dragon Oil expects to complete 11 wells in 2010.

01/22/2010

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