Turkmen President Commissions Dragon's New Processing Facility

Earlier this week, the President of Turkmenistan, Gurbanguly Berdymuhammedov, commissioned Dragon Oil's new onshore 50,000-bopd processing facility (NPF).

Hussain Sultan, Dragon's chairman and chief executive officer, held discussions with Berdymuhammedov regarding the company's participation in future energy projects in Turkmenistan.

Sultan commented:

"I would like to thank President Berdymuhammedov for his hospitality during our visit to Turkmenistan and honoring us with the official commissioning of the Company's new processing facility. I would also like to thank him for the attention and support that Dragon Oil has received, and continues to receive, from the government of Turkmenistan. Our discussions were very helpful and productive and we look forward to working closely with the President and the Turkmen people.

"We greatly value the partnership with the Turkmenistan Government and I am confident that our close relationship will continue in connection with a range of different projects. Dragon Oil is committed to a large investment into the country and in particular I expressed our readiness to the President to implement a project for the construction of the infrastructure required to commercialize our gas resources. We hope to make progress in the discussions with the government in the coming months."

Following Dragon announcement of March 5, 2007, regarding the operational commissioning of the NPF, Sultan met with Berdymuhammedov for the official commissioning ceremony for the NPF on June 5 in Hazar, Turkmenistan. After the president symbolically cut the ribbon to mark the opening of the NPF, he met with Sultan privately for discussions on the current operations and future prospects of Dragon Oil within Turkmenistan.

Among other items, Berdymuhammedov and Sultan discussed the development of the gas resources in the Cheleken Contract Area, for the mutual benefit of both Dragon Oil and the Turkmenistan Government. Berdymuhammedov stated that he envisaged a long-term program for the development of the energy resources within Turkmenistan, and specifically offshore, and that this would require substantial investment by foreign companies like Dragon Oil. The president cited Dragon Oil as one of the country's most reliable and highly rated partners and congratulated all participants for the successful construction of the NPF.