Dragon Oil to Recommence Work on Cheleken Block

Dragon Oil has awarded a contract to LukOil for a jackup from early November 2003, for a period of 8 months, to re-commence its drilling program in the Cheleken block, Turkmenistan. The contract for the engineering and upgrade of LAM 21 platform is also in the final stages of being concluded.

Hussain M. Sultan, Chairman of Dragon Oil commented: 'This is a significant contract to be executed by Dragon Oil and we are extremely pleased to have signed the contract with LukOil. The provision of a jack up rig to continue drilling in our Turkmenistan field will ensure that we are able to enhance production and build upon last year's achievements.

We are also in the final stages of concluding a contract for engineering and upgrade of the LAM 21 platform, from which the next wells are to be drilled. The plan to drill from LAM A has been deferred'.