RNS Number : 4881Z
Dragon Oil PLC
21 July 2008
21st July 2008
DRAGON OIL plc
("Dragon Oil" or the "Company")
Award of Contract for New Trunkline
Highlight
* A US $170 million contract has been awarded for the construction of a new 30-inch,
39.4 km trunkline
Dragon Oil plc, an international oil and gas exploration and production company, is
pleased to announce that it awarded a US $170
million 15 month contract to Petro Gas FZE on 16th July 2008 for the engineering, procurement
and installation of a new 30-inch, 39.4 km
trunkline. This major capital expenditure is recoverable under the terms of the Company's
Product Sharing Agreement ("PSA").
Once commissioned the trunkline will be capable of transporting all the oil and gas
produced offshore from Dragon Oil's asset in the
Cheleken Contract Area, in the Caspian Sea onshore to the Company's New Processing Facility
("NPF") based in the town of Hazar on the
western coast of Turkmenistan.
As previously announced the Company is currently tendering for up to four new jack-up
rigs. It has received tenders for phase 2 of the
NPF which will enable the facility to process up to 100,000 bopd and 180 mmscfd of gas and
also for the Front End Engineering Design (FEED)
for the gas monetisation project.
Hussain M. Sultan, Executive Chairman, commented:
"I am pleased to announce that we have awarded the contract for this important project as
it is a major step towards securing future
growth for Dragon Oil and its shareholders. Further major contracts shall be announced later
this year."
The trunkline is a key element of our extensive capital expenditure programme, which will
enable the Company to deliver on its promises
to continuously increase oil production and monetise the gas resource in the Cheleken Contract
Area."
Background Note
Dragon Oil Plc is an innovative international oil and gas development and production
company, quoted on the London and Irish Stock
exchanges (Ticker symbol: DGO). Its principal producing asset is in the Cheleken Contract
Area, in the eastern section of the Caspian Sea,
offshore Turkmenistan and recently acquired interests in Blocks 35, 49 and R2 (10%) in the
Republic of Yemen.
Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil plc, holds 100%
interest in and is the operator of the
Production Sharing Agreement for the Cheleken Contract Area in the Caspian Sea, offshore
Turkmenistan. Operational focus is on the
re-development of two oil producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).
www.dragonoil.com
For further information please contact:
Media enquiries
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
George Cazenove
Investor and Analyst enquiries
Dragon Oil Plc (+971 4 305 3600)
Leanne Denman, Investor Relations Officer
This information is provided by RNS
The company news service from the London Stock Exchange
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