Turkmenistan: Dragon ramping up Caspian oil output

Dragon Oil PLC said its oil production averaged 74,300 b/d in the quarter ended Sept. 30 from Lam and Zdanov fields in the 950 sq km Cheleken contract area at the eastern end of the Apsheron ridge in the Caspian Sea offshore Turkmenistan.

The company produced 7% more oil in the quarter than in the same period of 2012 and sold 3.2 million bbl, up 14%. It exported all of the oil through Azerbaijan.

The company is seeing positive oil production responses from water injection for pressure maintenance and artificial lift via jet pumps.

A water injection pilot in the Lam 75 area began in June, and the company plans to expand water injection to two or three other platforms in 2014. It installed jet pumps in June in two wells on the Lam 13 platform that led to a production increase of 500-700 b/d/well. It is adding a jet pump to a third well and intends to install them on other platforms next year.

Dragon Oil let a contract in September to quadruple its onshore crude oil storage capacity to an undisclosed figure with completion of three large tanks set for fourth-quarter 2015.

It seeks to award a contract in first-half 2014 to add a 30-in. trunkline from Lam field to the central processing facility, and partial replacement of the two existing 12-in. pipelines is expected to finish in the same period. It expects to award a contract near yearend for engineering, procurement, and construction of a gas treatment plant that will take 2-3 years.

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