Dragon Oil Still Working to Clear Block LAM Pipeline

Dragon Oil recently issued an update regarding its operations in the LAM field, which is in the Cheleken Contract Area offshore Turkmenistan.

On January 29, 2006, one of the company's LAM field feeder pipelines became blocked by a large volume of paraffin wax. The pipeline is located between the LAM 22 well head platform and the Block 2 riser platform. Initial attempts to treat the blockage were not successful, and subsequent measures were inhibited by weather and equipment availability. However, the company reports that a significant amount of paraffin wax and other waste material has been removed from the blocked pipeline at the Block 2 riser platform. Dragon will continue to treat the blockage with speciality chemicals to clear the blockage, and it will lay a new 8-inch, 2 1/2- kilometer pipeline between the LAM 22 and LAM 10 platforms as an alternative flow system for production from the LAM 22 platform. This new feeder pipeline is expected to be completed and commissioned by early April.

Operations on the LAM 22 platform are currently temporarily suspended, resulting in a total short-term daily loss of production of approximately 5,600 barrels of oil per day.

Further information on this matter will be provided in due course. No environmental impact or damage has occurred, and it is not anticipated there will be any.

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