Dubai-owned upstream exploration and production company Dragon Oil has extended its cooperation contract with Turkmenistan's state oil company for another 10 years worth a total of $1 billion.

Central Asian Petroleum Industry

The company, which has since operated in the Central Asian country for more than two decades, said the expansion would effectively expand its projects in Turkmenistan, bringing cumulative crude production to 350 million barrels by 2035.

Under the agreement, $500 million will be paid in cash and the rest will be paid over the next 13 years. Saeed Mohammed Al Tayer, chairman of Dragon Oil, said efforts will continue to carry out multiple sustainable explorations in the country. The Dubai-based company operates the Chekelen complex on the East Caspian Sea in Turkmenistan. It is its main producing asset, including major offshore oil and gas fields.

Dubai Dragon Oil signs contract with Turkmenistan National Oil Company

In 22 years of work in the country, Dragon Oil has invested $8.1 billion in drilling wells and building production facilities, producing about 437 million barrels of crude over 20 years. The contract extension is part of the company's growth and expansion plans, specifically to increase production capacity to 300,000 barrels per day by 2026, compared to about 160,000 barrels per day currently. Keywords: engineering news, overseas news

CEO Ali Al Jarwan said the signing of the contract also marks Dragon Oil's sustainable strategic growth and through continued intensification of exploration work, field development and well workover. The company also operates production and exploration assets in Egypt, Iraq, Algeria and Afghanistan.Editor/XingWentao