Turkmenistan, with its unique reserves of hydrocarbon resources, is actively developing its oil and gas industry as part of a comprehensive strategy aimed at modernizing infrastructure, meeting environmental standards and diversifying energy supply routes. In this context, Dragon Oil is an important partner of the country, which has been active in the oil and gas sector of Turkmenistan for more than 25 years.
Owned by the Government of Dubai, Dragon Oil stands as one of the largest foreign investors in Turkmenistan’s oil and gas industry. The company has significantly contributed to the nation’s economic growth through the adoption of advanced technologies and substantial investments in hydrocarbon resource development and production. In an exclusive interview with the Neutral Turkmenistan newspaper (https://www.turkmenmetbugat.gov.tm/ru/articles/182375 ), Chief Executive Officer Ali Al Jarwan shared insights into the company’s activities and future plans for collaboration with Turkmenistan.
25 years of successful cooperation
As Ali Al Jarwan noted, Turkmenistan plays a key role in Dragon Oil’s global strategies. The company has been operating in Turkmenistan since 2000 on the basis of a Production Sharing Agreement concluded with the Government. This document provides for the development and production of oil and gas in the contractual territory of Cheleken, including two offshore fields – Jeytun and Djigalybeg. The volume of accumulated investments during this time amounted to about US $ 10 billion, and the total production reached 447 million barrels.
Memorandum of Understanding with Turkmennebit State Concern
One of the important stages in the development of cooperation between Dragon Oil and Turkmenistan was the signing of a Memorandum of Understanding with the Turkmennebit [Turkmen Oil] State Concern in 2024. This document confirmed the intention of both sides to jointly develop new oil fields, including block 19 in the Turkmen sector of the Caspian Sea.
The exploration process, including seismic exploration, has already confirmed the prospects of developing the new block, which in turn opens up great opportunities for increasing oil and gas production, as well as introducing new technologies into the development process. In turn, for Turkmenistan, this means additional investments and the creation of new jobs — Dragon Oil employs more than 2,000 people.
Environmental responsibility and innovation
Dragon Oil prioritizes environmental protection, particularly within the sensitive ecosystem of the Caspian Sea. To minimize its impact, the company operates a “zero waste disposal” program. All solid and liquid waste, both industrial and domestic, generated on offshore platforms is collected and transported to designated landfills using specialized containers.
The state of the environment is constantly monitored on offshore platforms, samples are regularly taken from wells to control potential pollutants, and fresh and wastewater water is also sampled from offshore platforms for appropriate analysis.
In addition, for rapid response in the event of an oil spill, the company has modern equipment for removing pollutants from the water surface, as well as for responding in the coastal zone. Special team have been trained to work in an emergency.
“Our company has a strategy in which projects aimed at reducing emissions have already been implemented. Following the new global environmental standards that Turkmenistan adheres to, Dragon Oil expects to achieve zero combustion by 2027, reflecting our commitment to sustainable development and responsibility towards the environment,” Al Jarwan stressed.
Innovations
In the future, Dragon Oil plans to actively use innovative technologies, including artificial intelligence, to analyze exploration data and assess reservoir properties of deposits. “We are discussing all these projects with the State Concern, and some of them, including 3D seismic, have already been implemented in Turkmenistan at the Cheleken block and at the neighboring block 19,” Al Jarwan said.
The company is moving from 3D seismic exploration to geological exploration. The results of these studies will form the basis of a mining diversification program.
The future of cooperation: new horizons and prospects
According to Dragon Oil’s Chief Executive Officer, future collaboration with Turkmenistan’s oil and gas sector will focus on leveraging cutting-edge technologies and increasing hydrocarbon resource production and processing. Priorities include expanding exports of Turkmen oil, gas, and petrochemical products, as well as developing new blocks and projects in the Caspian Sea.
Dragon Oil continues to be a key player in Turkmenistan’s oil and gas development, introducing innovation, modern technologies, and sustainable practices. Over its 25-year partnership, the company has proven itself a reliable investor and responsible partner, paving the way for further cooperation and growth.///nCa, 21 February 2025