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National oil and gas company Napeco received a 5% stake in the PSA from Dragon Oil PSA

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03 November 2022

Turkmen national oil and gas company Napeco has received a 5% stake in a production sharing agreement (PSA) with Dubai-based Dragon Oil, which operates at the Cheleken field in the Turkmen sector of the Caspian Sea. This is reported by the independent price agency Argus.

According to Napeco CEO Maksat Pirliev, this deal was concluded on the sidelines of the International Conference "Oil and Gas of Turkmenistan-2022", which was recently held in Ashgabat.

In addition to the agreement with Dragon Oil, Napeco is involved in two other Turkmen projects. The company has a PSA with Mitro International at the Vostochny Cheleken field for a period up to 2025. Napeco also has a 10% stake in the project with the Italian company Eni at the East Cheleken field as a contractor.

Napeco also has a UAE-registered joint venture with Vitol that trades in crude oil, gasoline, gas condensate and other petroleum products. Napeco does not export the crude oil it produces or receives under the PSA. The company refines its share of Turkmen oil at the Turkmenbashi refinery, and then sells the finished product either through a joint venture with Vitol or through a deal on the state commodity exchange of Turkmenistan.