Ireland-based Turkmenistan player Dragon Oil is producing 32 percent more oil than a year ago after completing six wells over a year and despite export disruptions caused by a brief war in neighbouring Georgia.

Dragon production reached 39,770 barrels per day in September 2008 on production from six new wells. Two new wells, Dzheitune (Lam) 22/130 and Dzheitune (Lam) A/131, are being completed with test flows due in November.

And the company is again moving Turkmen oil through Georgia after diverting through Neka in Iran while Russia repulsed a Georgian attack that killed peacekeepers South Ossetia.

“Normal marketing routes have now resumed with 20 percent of volumes moving through Baku and 80 percent through Neka,” a statement said. Meanwhile, bids have been received for the six-month-long tender for front-end engineering and design study of the Phase 2 expansion of the Cheleken contract area’s production facility. Construciton contracts will follow.

By Septmeber 2008, Cheleken contracts for Eastern Caspian Sea work reached $170 million for a 40-kilometre, 30-inch gas pipeline and a $37 million for a Phase 2 expansion contract.

Tags: Dragon Oil Plc