Message from the CEO

Dragon Oil is a growing company currently producing in excess of 45,000 barrels of oil per day from the Cheleken Contract Area in the Caspian Sea, offshore Turkmenistan under the Production Sharing Agreement (PSA) signed in 1999 and effective as from May 2000. The management and Board are committed to the Group’s mission to explore and develop oil and gas resources by leveraging technology and a talented workforce whist acting as a reliable, ethical and conscientious partner.

2009 marked the 10th anniversary of Dragon Oil’s PSA for the Cheleken Contract Area.  From its signing in 1999, we have successfully increased average gross daily production from about 7,000 bbls per day to around 50,000 bbls per day of oil at the end of 2009, achieving a production growth reflecting the mutually beneficial cooperation between Dragon Oil and the State Agency for Management and Use of Hydrocarbon Resources in Turkmenistan. 

Since 1999 Dragon Oil has invested US$1.5 billion in development and production assets in Turkmenistan and, as such, we are one of the largest foreign investors in the country.  Our medium term strategy to drive production growth for the next three years anticipates the completion of up to 40 new wells, including two appraisal wells, to support a production growth averaging 10% to 15% per year with an infrastructure spend of approximately US$600 to US$700 million over the period.  Dragon Oil is also actively seeking to grow through diversification of its asset base through targeted acquisitions in the Middle East, North Africa and Central Asia.

Our motto in Dragon Oil is People First. This value is promoted throughout the Group from Senior Management through to our colleagues operating in the field. We issued a new Code of Conduct in 2009 to ensure that all employees are treated in a fair manner throughout the Group.  We actively encourage cultural diversity throughout the Group and are a major employer in Turkmenistan with a high proportion of staff members originating from our host country, while over 30 nationalities are represented in our Headquarters in Dubai. Dragon Oil promotes a spirit of cross-cultural understanding enabling the Company to take advantage of a wide range of international skills and experience.  At the same time a key priority is continuously improving our health and safety levels in all our operations across the Group.

Corporate Social Responsibility remains high on Dragon Oil’s agenda reflecting our belief that it is our duty and responsibility to take care of the community in which we operate.  Our CSR initiatives include improving the quality of water supply, education and health in the local Hazar community, Turkmenistan where we operate.  A key project for 2009 was the completion of a new 1,500 cubic metres per day capacity desalination plant in Hazar which supplies a large and stable volume of potable water to the local community.  We are currently embarking on a multi-million project which involves building a new polyclinic for the local Hazar community. 

As an independent public company listed on the London and Irish Stock Exchanges, we are fully aware of our responsibilities to all our shareholders. We are working hard to continually improve disclosure and overall transparency in our communications with the financial community and markets in general. Dragon Oil is committed to securing long-term growth and return on investment for all its investors.

Dragon Oil has a strong and dedicated management team supported by a highly-qualified employee resource base in Dubai and Turkmenistan.  We will continue to invest for growth and work hard to translate strategy into value for the business for the benefit of our respected hosts in Turkmenistan, our customers, our shareholders and our employees.  We look forward to the years ahead and to delivering that value.

Dr Abdul Jaleel Al Khalifa
Chief Executive Officer