“Dragon Oil” and “Turkmenistan Oil” are expanding their investments.

Dragon Oil, a company fully owned by the Dubai government, signed a memorandum of understanding with Turkmenistan’s state oil company (Turkmennebit). The agreement includes the expansion of Dragon Oil’s investments in the promising Turkmen oil and gas sector, which encompasses three new oil fields within Block 19.

The memorandum was signed on behalf of the Emirati side by Ali Rashid Al Jarwan, the Chief Executive Officer of “Dragon Oil,” and on the Turkmen side by Agajonov Jovanc, the Head of the State Agency “Turkmen Oil.”

On the sidelines of the signing event, the national leader of the Turkmen people, the Head of the State Concerns Gurban Guly Berdimuhamedow, met with the Chairman of Dragon Oil, Saeed Mohammed Al Tayer. During the meeting, both parties discussed ways to further enhance bilateral cooperation and explore opportunities for advancing the energy sector, as well as the oil and gas industry in Turkmenistan, given Dragon Oil’s extensive experience and significant achievements in these fields.

Mohammedov expressed his gratitude towards the “Dragon Oil” company for its support of the Turkmen health sector with medical equipment and pharmaceuticals, especially during the “COVID-19” period. During this time, the company provided around 19 ambulances and three clinics, each fully equipped with medical apparatuses intended for COVID-19 patients. Additionally, Dragon Oil supplied comprehensive clinics situated within the company’s fields to serve its employees.

Ali Rashid Al Jarwan, the CEO of Dragon Oil, stated:

“The signing of the memorandum of understanding with Turkmenistan reflects the great confidence the company enjoys with the Turkmenistan government, a testament to the company’s presence in this hospitable country for over 20 years.”

Al-Jarwan added:

“The company is aiming to expand investment in three oil fields with the goal of increasing production in the near future. Turkmenistan is a very important oil-producing country with considerable oil and gas capabilities. We are eager to enhance our presence there through new investments that will positively reflect on both parties in terms of boosting the state’s income from revenues and creating new job opportunities, especially since the company employs more than 2,000 people in Turkmenistan alone.”

Addressing the agreement, Al-Jarwan clarified that the memorandum will enable the company to transfer modern technology and techniques in the oil sector while undertaking technical and financial investments to develop the fields covered by the memorandum. He pointed out that the memorandum is just the beginning of the excellent relations that have been established with Turkmenistan. Al-Jarwan also noted that Block 19 includes three new fields near the Chelken field, where they operate the concession. They have conducted seismic surveys at a cost of $35 million, and the analysis results indicate that Block 19 has promising potential.

He added:

“Our expansion plans in Turkmenistan are situated in an area near the Chelken field, a promising region we are well acquainted with.”

He mentioned that the next phase, after signing the goodwill agreement, involves drilling two to three wells. The third phase is the production development stage upon the discovery of oil.