The Cheleken Contract Area covers approximately 950 square kilometres and comprises two offshore oil and gas fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov), in water depths of between eight and 42 metres. The fields comprise two elongate anticlines situated at the eastern end of the Aspheron Ridge. The Aspheron Ridge is a prolific hydrocarbon play extending from the Apsheron Peninsula in Azerbaijan to the Cheleken Peninsula in Turkmenistan and divides the South Caspian Basin from the Middle Caspian Basin. The eastern boundary of the Cheleken Block is coincident with the landfall at Khazar and the western block boundary extends up to 40km offshore.
The 3-D seismic survey was acquired in 2004-2005; the interpretation was completed, while continuous additional studies and refinement are ongoing.
The Dzheitune (Lam) field is located to the South-West of Zhdanov field. Since the commencement of the Production Sharing Agreement in 2000, Dragon Oil has drilled over 100 new wells and a number of sidetracks from existing wells on the Lam field, constructed and installed a number of new wellhead and production, accommodation and tie-in platforms with plans to award contracts for construction and installation of a number of new platforms in the next few years, refurbished and upgraded existing platforms and performed many successful workovers.
The Dzhygalybeg (Zhdanov) field is located to the North-East of the Lam field. The initial exploration and prospecting of the Zhdanov structure began in 1965. The first well with commercial oil and gas was drilled in 1966. The field has produced oil and gas from a series of numerous, stacked early to middle Pliocene Red Series sandstone reservoirs. Dragon Oil has completed a number of successful workovers in the Zhdanov Field and installed its first new platform, Zhdanov A. Drilling from this platform commenced in 2014.