A LEADING INTERNATIONAL OIL AND GAS EXPLORATION AND PRODUCTION COMPANY, DRAGON OIL HAS PLAYED A SIGNIFICANT ROLE IN TURKMENISTAN'S HYDROCARBON SECTOR SINCE 2000. FOCUSED ON DEVELOPING THE CHELEKEN BLOCK IN THE CASPIAN SEA, ITS INVESTMENTS HAVE CONTRIBUTED TO INCREASED PRODUCTION CAPACITY AND TECHNOLOGICAL ADVANCEMENTS, SUPPORTING THE COUNTRY'S ENERGY GROWTH.

DRAGON OIL HAS BEEN A PROMINENT PLAYER IN THE TURKMENISTAN OIL AND GAS SECTOR FOR OVER TWO DECADES. COULD YOU PROVIDE AN OVERVIEW OF YOUR CURRENT OPERATIONS AND KEY MILESTONES ACHIEVED IN THE REGION?

Our journey in Turkmenistan began in 2000 with the signing of the Production Sharing Agreement (PSA) for the Cheleken Contract Area, located in the Caspian Sea. At that time, production was around 7,000 barrels of oil per day. Through strategic investments, technological advancements, and the dedication of our team, we have transformed this operation significantly. Today, we have surpassed 60,000 barrels per day, which is a remarkable achievement and a testament to our long-term commitment to the region.

Key milestones include the development and commissioning of several offshore platforms and the implementation of enhanced oil recovery (EOR) techniques. These advancements have not only optimized production but have also extended the life of our reservoirs. We have also heavily invested in infrastructure development, such as pipelines and processing facilities, which are essential for maintaining operational efficiency and ensuring the safe and reliable transportation of our products.

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WITH SUSTAINABILITY BECOMING A GLOBAL PRIORITY, HOW IS DRAGON OIL ALIGNING ITS OPERATIONS IN TURKMENISTAN WITH ENVIRONMENTAL AND SOCIAL GOVERNANCE (ESG) PRINCIPLES?

Sustainability and responsible operations are at the core of Dragon Oil’s strategy globally, and this is reflected in our approach in Turkmenistan. We have implemented numerous initiatives to minimize our environmental impact, including transitioning to zero gas flaring by 2027 in Turkmenistan. Our focus on using environmentally friendly technologies and rigorous safety and environmental management systems reflects our dedication to operating responsibly and contributing positively to the communities where we are present.

At COP 28, held in Dubai in 2023, we proudly signed the Charter to Decarbonize the Oil and Gas Industry alongside 50 leading international companies in the sector. We extend our sincere gratitude to the visionary leadership of the UAE for successfully hosting this pivotal global event, which resulted in the establishment of the Global Climate Fund and the mobilization of over $83 billion to support global climate action. These achievements underscore the UAE’s unwavering commitment to environmental stewardship and its ongoing efforts to achieve sustainable development goals and climate neutrality by 2050.

We are also exploring the use of renewable energy, particularly solar power, to support our offshore platforms. This is a long-term project that aligns with our goal of reducing our carbon footprint and contributing to the global energy transition.On the social side, we prioritize supporting local communities. We focus on hiring local talent and providing training and development opportunities. Our community investment programs target areas such as healthcare, education, and infrastructure development, ensuring that our presence in Turkmenistan has a positive and lasting impact beyond just economic contributions.

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WHAT ARE DRAGON OIL’S STRATEGIC PRIORITIES IN TURKMENISTAN OVER THE NEXT FIVE TO TEN YEARS?

Our strategic priorities are centered on sustaining and enhancing our production capabilities while maintaining a strong commitment to sustainability and operational excellence. A key focus is the further development of the Cheleken Contract Area. We plan to invest in additional drilling and the implementation of new technologies to increase recovery rates from existing fields. We are also exploring potential new fields within the contract area, which could significantly boost our production capacity.

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Diversifying our asset base is another priority. While Turkmenistan remains a core part of our portfolio, we are looking for opportunities to expand our presence in other regions. This strategy aims to balance our portfolio and ensure long-term growth and stability. We are also adapting to the global energy transition. While oil and gas will continue to be essential, we are actively exploring opportunities in the renewable energy sector. Our goal is to become a more integrated energy company, contributing to the energy needs of the future in a sustainable manner.

This year, we opened our largest regional office outside the UAE in Ashgabat, which marks a new chapter of serious and productive cooperation in Turkmenistan. We are targeting an increase in production from all our operations, from 180,000 to 250,000 barrels per day by the end of 2025.Recently, we expressed our intention to invest over $10 billion to enhance production from the Cheleken concession area, with total production expected to reach 447 million barrels. This commitment to Turkmenistan includes employing advanced technologies and best practices in oil and gas production, aiming to serve both the Turkmen government and Dragon Oil until 2035.

In January, we signed a memorandum of understanding with Turkmennebit to add three new oil fields in Block 19 in the Turkmen sector of the Caspian Sea to our assets. Seismic surveying, costing $35 million, has confirmed the potential of these fields, which are close to the Cheleken field. The next phase will involve drilling two or three wells, followed by production.

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WHAT IS DRAGON OIL’S LONG-TERM VISION FOR ITS PRESENCE IN TURKMENISTAN?

Our long-term vision is to be a key partner in the development of Turkmenistan’s oil and gas sector. We aim to continue being a leading producer in the Cheleken Contract Area, contributing to the country’s economic development by creating jobs, building local capacity, and investing in community development. We also strive to set an example for sustainable operations, demonstrating that it is possible to achieve growth while being mindful of environmental and social responsibilities. Turkmenistan has immense potential, and we are excited to be part of its journey toward becoming a major player in the global energy market. We look forward to many more years of successful collaboration and shared growth.