Dragon Oil, wholly-owned by the Dubai government, plans to invest more than $10 billion to expand production from the Cheleken concession area in Turkmenistan.
The investments are expected to increase the cumulative crude production capacity to 447 million barrels, the UAE state-run Wam news agency reported.
The Dubai-headquartered company has been operating the offshore Cheleken contract area since 2000.
In February, Dragon Oil CEO Ali Rashid Al-Jarwan revealed plans to begin exploration drilling at Block 19 in Turkmenistan’s Caspian Sea in 2024, Russian news agency Interfax reported.
Dragon Oil holds a 25-year license to explore and produce oil and gas at Cheleken, with exclusive rights to negotiate a license extension of at least 10 years.
The Cheleken area includes the Dzheitune and Dzhygalybeg fields, which have reserves of 675 million barrels, Interfax said.
During a meeting with Turkmenistan officials, Saeed Mohammed Al Tayer, chairman of Dragon Oil, said the company is working to achieve zero emissions by 2027 across its Turkmenistan assets. This will be achieved by stopping gas flaring, increasing gas re-injection into oil wells and gas sales to the government.
Additionally, Dragon Oil is exploring new areas, including the west of Zhdanov field and the Block 19 area, to add new production and boost existing capacity.
The company is considering acquiring additional offshore concessions, such as the Dongolok site and Block 20, Al Tayer said.