Dubai-based Dragon Oil plc has leased two LeTourneau S116E jackup rigs from BKE Shelf Ltd to use in its Cheleken Contract Area, offshore Turkmenistan.
The Neptune and Mercury have been contracted for a period totaling three years. Neptune will be utilized for the first 9 months of the project, and is expected to be available in the fourth quarter. Operations will then shift to the Mercury for the remainder of the three-year term.
The Dubai-based Dragon is the sole operator of Cheleken, which includes 2 offshore oil and gas fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov) in water depths of between 8-42m (26-137 ft.). The contract area covers approximately 950sq. km.
In late June, Dragon reported proven and probable oil and condensate reserves of 664 mmbo, 59mm of oil and condensate contingent resources, 250 mboe, and 1.4 Tcf of gas resources in Cheleken. In 2000, the company secured a 25-year-term production license, and is targeting a 100,000 bopd production rate by 2015 to be maintained for at least 5 years.
BKE Shelf Ltd is a subsidiary of Eurasia Drilling Company Ltd. (EDC). EDC operates offshore in the Caspian Sea after acquiring LUKOIL's offshore drilling business in 2006. The company entering the industry by acquiring LUKOIL, including the Shell-operated jackup Astra, one of the busiest vessels in the Caspian.
Image of the activity in Dragon's Cheleken contract area offshore Turkmenistan, courtesy Dragon Oil plc.