ASHGABAT, Turkmenistan, May 14 (UPI) -- International oil and gas explorer Dragon Oil said it would spend up to $700 million on infrastructure projects in the Turkmen waters of the Caspian Sea.
Dragon Oil provided details regarding two platform contracts awarded for the construction of platforms in the Cheleken contract area in the Caspian Sea.
The first contract was for a platform in the Zhdanov field, which Dragon Oil said could drill up to eight wells once completed in 2012. A second contract was for construction of a platform in the Lam field, which the company said could drill eight wells once that project is completed in 2011.
"This is a significant investment in our infrastructure and will ensure that we are well placed to meet our production targets in the years to come," said Abdul Jaleel al-Khalifa, chief executive at Dragon Oil.
The company said it expected to spend $250 million in 2010 and up to $700 million in total on the two production platforms.
However, Turkmenistan boasts around 546 million barrels in proven reserves. Undeveloped offshore fields could bring that total to around 1.7 billion barrels. Natural gas, meanwhile, is abundant in Turkmenistan, with European leaders looking to Ashgabat as a partner for the lauded Nabucco gas pipeline.
