It is planning to commercialize 100-200 standard cubic feet per day (scfd) and has already established the infrastructures required to do so.
Commercialization of the gas is a key strategic priority for the group, Abdul Jaleel Khalifa, chief executive officer and executive director of Dragon Oil, said. “We are taking steps to sell the produced gas under a gas sales agreement. On agreement of a gas sales contract and on construction of the gas processing plant, we will be able to convert the current gas resources into reserves, which would add significant value to Dragon Oil.
Dragon Oil has awarded a 30-inch, 40 kilometer oil and gas trunk line to be concluded in 2009. Khalifa said the $170 million project is scheduled for completion in November 2009.
We have to expand the facilities onshore to include a gas separation facility. The Phase II of the central processing facility will add to the capacity increasing to 100,000 barrels of fluid per day (bfpd) from the current 50,000 bfpd, he said.
Khalifa said: We are in the process of tendering the Feed study, which will take us two months to award subject to approvals. Hopefully, we can complete the study within H2 2009. The tender is being progressed in accordance with the plan approved by the Government of Turkmenistan.”
