Dragon Oil Tosses Pipeline Construction Contract to Petro Gas
Monday, July 21, 2008
Dragon Oil plc announced that it awarded a US $170 million 15 month contract to Petro Gas FZE on July 16, 2008 for the engineering, procurement and installation of a new 30-inch, 39.4 km trunkline. This major capital expenditure is recoverable under the terms of the Company's Product Sharing Agreement.
Once commissioned, the trunkline will be capable of transporting all the oil and gas produced offshore from Dragon Oil's asset in the Cheleken Contract Area, in the Caspian Sea onshore to the Company's New Processing Facility (NPF) based in the town of Hazar on the western coast of Turkmenistan.
As previously announced the Company is currently tendering for up to four new jack-up rigs. It has received tenders for phase 2 of the NPF which will enable the facility to process up to 100,000 bopd and 180 mmscfd of gas and also for the Front End Engineering Design (FEED) for the gas monetization project.
"I am pleased to announce that we have awarded the contract for this important project as it is a major step towards securing future growth for Dragon Oil and its shareholders," said CEO Hussain M. Sultan. "Further major contracts shall be announced later this year."
"The trunkline is a key element of our extensive capital expenditure program, which will enable the Company to deliver on its promises to continuously increase oil production and monetize the gas resource in the Cheleken Contract Area."