Dragon Oil

Exploration & Production

Achievements To Date & Current Projects
Presented by

Dr. Abdul Jaleel Al Khalifa

CEO, Dragon Oil

14th Annual TIOGE Conference

17 - 19 November 2009
10 Years of
Successful Partnership

Dragon Oil - Company Profile

An international oil and gas exploration and
production company, based in Dubai
Dragon Oil operates a 100% working interest in the
Cheleken Contract Area via a Production Sharing
Agreement, signed with the Turkmenistan
Government in 1999
Publicly listed, and majority owned by the
Government of Dubai (ENOC)
Recent purchase offer by ENOC for all minority
shares, singles a strong confidence in the Cheleken
Block and in the future of Turkmenistan
10 Years of
Successful Partnership

Cheleken Contract Area - Offshore Turkmenistan

Sevemyy
Chelekensky Bay

CASPIAN
SEA
Cheleken Contract Area

DZHYGALYBEG
GOSP
CPF

Hazar
0

10

20

Dragon Camp

Tank
Farm

DZHEITUNE

Aladja
Jetty

30 Km

10 Years of
Successful Partnership

Dragon Oils Turkmenistan Experience

2009 marks 10 years of

successful partnership between
Dragon Oil and Turkmenistan

10 Years of
Successful Partnership

Simplistic Approach to Reservoir Complexity

New Wells

Multiple Sand Layers

Old Wells
TOP CH -1

TOP CH -2

2000 - 5000m Depth

Thin Reservoir Sands
- Variable Quality
- Variable connectivity
Complex Faulted Structure
Important to Identify & Map Faults
Multiple Fluid Contacts
Potential to Map Sand Bodies
4

Advanced Characterization of the Reservoir

Shale

Sand

Spectral decomposition and Seismic

facies classification adds value to
visualization and interpretation
workflows
10 Years of
Successful Partnership

Attribute Extraction over Acoustic

Impedance
5

Dynamic Reservoir Modeling

Over 1 Million Cells

10 Years of
Successful Partnership

Main Lam Field Saturation Map

(3D view with CH4 on topmost portion)
6

3D Visualization Centre

10 Years of
Successful Partnership

Land & Jack-Up Rig Utilization

Rig ASTRA

DOTLs Rig 40
10 Years of
Successful Partnership

Rig Iran Khazar

High Angle, Multi-Well Platforms

Tested Rate 2,057 BOPD

10 Years of
Successful Partnership

8 12 Wells per Platform

9

Field Map
Dzhygalybeg Field
ZH-60

ZH-04

Shoreline

ZH-31
ZH-21

Dzheitune Field
Block-2

ZH-27
ZH-25

Block-1
LAM B
LAM-28

LAM-A

LAM-21

Block-3

GOSP

LAM-75
Dragon
Camp

LAM-63
CPF
Harbour
Hazar
Town

LAM86
LAM-10

Karagel
Tank Farm

Offshore Field Summary

LAM-13

LAM-22

Export
Aladja
Jetty

12 Producing Platforms & 3 Drilling Rigs

plus Lam B under construction
Water Depths 8 42 meters
58 Producing Wells (currently); 60 year-end 2009
Two 12 Main Lines to GOSP (39 km each)

10 Years of
Successful Partnership

One 16 Line from GOSP to CPF (9 km)

10

Onshore/Offshore Facilities Before & After

Lam 22
- circa 1999
& Today

CPF Site
- circa 2004
& Today

Lam 13
- circa 2006
& Today
10 Years of
Successful Partnership

11

10 Years of Field Redevelopment (cont)

7 Platforms Upgraded & Refurbished
Structural / additional slots installed
Lam 21, Lam 10, Lam 22, Lam 13, Lam 28, Lam 63,
Lam A

4 New Platforms Constructed

Production platform Lam A (8 Slots)
Production platform Lam B (8 Slots)
Gathering platform Block 2
Accommodation Platform Lam 22

80 km of In-Field Pipelines Installed

10 Years of
Successful Partnership

12

New LAM B Platform (Nov/2009)

10 Years of
Successful Partnership

13

10 Years of Field Redevelopment (cont)

Central Processing Facility CPF (2007)
Oil handling capacity = 6,500 mt/day

Export Capacity (2008)

Simultaneous loading of 2 tankers

Oil Storage (2009)

Total oil storage now over 39,000 mt

10 Years of
Successful Partnership

14

Investment History
Capital Expenditures & Operating Costs [USD 000s]
$1,000,000

$2,000,000

$900,000

$1,800,000
$1,600,000

$800,000
Opex

Total Expenditures

$700,000

$1,400,000

$600,000

$1,200,000

$500,000

$1,000,000

$400,000

$800,000

$300,000

$600,000

$200,000

$400,000

$100,000

$200,000

Total Expenditures

Annual Expenditures

Capex

$0

$0
2000

10 Years of
Successful Partnership

2001

2002

2003

2004

2005

2006

2007

2008

2009 - Est

15

Strong Production Growth

Average Daily Oil Rate
[Metric Tonnes per day)

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0
2000

10 Years of
Successful Partnership

2001

2002

2003

2004

2005

2006

2007

2008

2009

* 2009 based on
projected year
production volumes

16

Dragon Oil Growth Plans

Build New 30 Multiphase Trunkline to shore
Increase CPF Processing Capacity (13,000 mt/d liquids)
Secure 3 4 Drilling Rigs on long term basis
Construct New Platforms
Lam C & D to follow (Dzheitune Field)
Zhdanov A & B (Dzhygalybeg Field)

Upgrade Existing Platforms

Block 1 Riser Platform
Install Additional Drilling Slots
10 Years of
Successful Partnership

17

Gas Commercialisation Project

Capture the flame &
bring all gas to shore
Up to ~2 bcm/year
Gas in multi-phase 30
pipeline
Separate gas onshore

Chemical
Plant

Gas Export
to Govt
Network

OLD 12
TRUNKLINE

NEW 30
TRUNKLINE

Planned Gas
Treatment
Plant (GTP)

FEED Study underway

CRUDE OIL

10 Years of
Successful Partnership

Crude +
Condensate
Export

18

Our Main Asset - People

Strong localization program
Turkmenistan Nationals comprise over 90% of in-country
manpower
Emphasis to provide qualified Nationals an open career
path

Dragon Oil Excellence Center

Dedicated training facility
in Hazar
Provides programs in key
skill areas

10 Years of
Successful Partnership

19

Formal & On-the-Job Training for National Workforce

10 Years of
Successful Partnership

20

Dragon Oil Social Responsibility

Good Neighbour philosophy:

Inaugural
Opening
of the
Hazar
1,500 m3/day
Desalination
Plant

10 Years of
Successful Partnership

21

Dragon Oil Social Responsibility

Good Neighbour philosophy:
School Playground

A Success with Local Youth

Education: Refurbishment of Hazar School #3

10 Years of
Successful Partnership

22

Closing Remarks
Dragon Oils strong partnership with the Turkmenistan
Authorities is a template of success
The Company will drive production growth to higher levels
by continuing financial investments and leveraging new
technologies
We operate as a good neighbor in our communities and
our people are our main asset: 91% participation by local
workforce
Dragon Oil & ENOC have a long-term commitment to
Turkmenistan
Towards a new decade of successful partnership
10 Years of
Successful Partnership

23