Dragon Oil builds Turkmen Caspian output

Dragon Oil PLC plans to spend as much as $600 million in 2009 in the Cheleken contract area in the Caspian Sea off Turkmenistan.

By OGJ editors
HOUSTON, Jan. 22 -- Dragon Oil PLC plans to spend as much as $600 million in 2009 in the Cheleken contract area in the Caspian Sea off Turkmenistan.

The goal is to hike oil production 15% from the 2008 average of 40,992 b/d, which was up 28% from 2007. Yearend 2008 production was 45,600 b/d.

The 2009 program calls for three full-time rigs to spud 13 wells, 10 of which are to be completed by the end of the year.

Nine wells were completed in 2008 from the Lam-22, Lam A, and Lam-21 platforms. The wells were completed at 3,000-4,135 m, and eight were dual completions.

Perforations were added to three wells in the last quarter of 2008, evoking 2,000 b/d of incremental production.

Dragon Oil is expanding its central processing facility to handle 100,000 b/d of liquids and up to 220 MMscfd of gas and is laying 40 km of 30-in. oil and gas trunkline.

The company sells 80% of its crude oil through Neka, Iran, and 20% through Baku, Azerbaijan. The Neka route offers higher netbacks.

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