UAE Business: Dragon Oil signs $1bn extension deal with Turkmenistan – Gulf Digital News

UAE Business: Dragon Oil signs $1bn extension deal with Turkmenistan – Gulf Digital News

Dragon Oil, Dubai government’s exploration and production firm, has renewed its contract with Turkmenistan’s Turkmen Oil for a further period of 10 years from May 2025. The total value of the contract is $1 billion of which $500 million will be paid in cash, while the remaining $500 million will be allocated over the next 13 years.

This includes the company's commitment towards the support of the Turkmen government's projects, community development, education, public health and some benefits of the co-production.

Moreover, Dragon Oil’s investments, during the contract extension period, are expected to reach another $7-8 billion to support expansion and development programmes.

Future production levels

Future production levels would range between 60-70 thousand barrels per day. The cumulative production of crude oil is expected to reach 350 million barrels until the year 2035.

The signing ceremony of the agreement was held in the Turkmen capital, Ashgabat, with the presence of Engineer Ali Al-Jarwan, CEO of Dragon Oil and a few members of the company's executives.

The Cheleken complex, located in the East Caspian Sea in Turkmenistan, is the main producing asset of Dragon Oil, and consists of two major offshore oil and gas fields, Lam and Zhdanov, which have been successfully developed and maintained since