More than two decades of operations in Turkmenistan have established Dragon Oil as a long-term international operator in the country’s offshore energy sector. With the Cheleken Production Sharing Agreement extended to 2035, the company’s presence combines established production infrastructure with continued exploration and a long-term commitment to the Turkmen sector of the Caspian Sea.
Dragon Oil has operated in Turkmenistan since 1 May 2000 as the sole operator of the Cheleken concession in the Caspian Sea. Over more than two decades, the company has developed an extensive operational presence centred on offshore production and associated onshore processing, storage and crude export facilities.
The Cheleken contract area covers approximately 950 square kilometres and comprises two offshore fields — Jeytun and Jygalybeg — located around 45 kilometres from the Turkmen coast.
Today, these established operations provide the foundation for continued development as Dragon Oil combines its existing infrastructure with exploration activities around producing areas.
As a Diamond Partner of OGT 2026, Dragon Oil also brings its long-term operational experience in Turkmenistan to discussions on investment, technology and the development of the country’s offshore resources.
More Than Two Decades in Cheleken
Dragon Oil’s presence in the Cheleken Contract Area provides an example of the long investment horizons associated with offshore oil and gas development.
Offshore assets require more than drilling. Their development depends on production facilities, processing and storage capacity, export infrastructure and the technical capabilities required to operate these systems over extended periods.
In Cheleken, Dragon Oil has established facilities supporting the processing, storage and export of crude oil. The company is also pursuing short-cycle, infrastructure-led exploration activities near its existing facilities in oil-prone areas.
This approach connects established operations with further exploration around existing infrastructure — an increasingly important consideration in offshore development, where the ability to use facilities already in place can influence the commercial development of additional resources.
Partnership Extended to 2035
A significant development in Dragon Oil’s presence in Turkmenistan has been the extension of the Production Sharing Agreement for the Cheleken concession.
The PSA has been extended for a further ten years and is now due to expire in 2035.
Dragon Oil has described the extension as an important milestone in its operations in Turkmenistan and has highlighted its close cooperation with the State Concern “Türkmennebit” in reaching the agreement.
For an offshore operator, a longer contractual horizon provides a framework within which production, exploration, infrastructure and technology decisions can be considered over a multi-year period.
In Cheleken, the extension provides continuity for an operation that has already developed over more than two decades and creates a framework for continued activity through the middle of the next decade.
Technology and Established Infrastructure
Technology is another element of Dragon Oil’s approach to exploration and production.
The company states that it deploys advanced technology, encourages innovation and applies industry best practices across its exploration and production activities. It also emphasises the development of technical capabilities throughout the E&P cycle.
These capabilities are particularly relevant for established offshore assets.
As producing fields develop over time, operators require increasingly detailed understanding of reservoirs and production performance. Decisions on exploration, drilling and field development must also take into account existing infrastructure and the technical and commercial conditions surrounding additional investment.
In this context, Dragon Oil’s combination of established facilities and infrastructure-led exploration provides a practical link between existing production and the search for additional opportunities around the Cheleken area.
Caspian Offshore Development on the OGT 2026 Agenda
The future of offshore development in the Turkmen sector of the Caspian Sea will also form part of the discussions at OGT 2026.
The conference programme includes offshore investment opportunities, exploration, seismic acquisition and interpretation, marine infrastructure, offshore drilling technologies, marine logistics and international cooperation.
The inclusion of these issues reflects the continuing importance of the Caspian within Turkmenistan’s wider upstream development agenda.
For international operators, future opportunities will depend on a combination of geological potential, investment conditions, technology, infrastructure and long-term cooperation. For companies already operating offshore, accumulated technical knowledge and existing facilities can provide an important foundation for assessing further opportunities.
From Long-Term Operations to New Opportunities
Dragon Oil’s operations in Turkmenistan demonstrate the long-term nature of offshore energy development.
Since entering the Cheleken concession in 2000, the company has built an operating presence around the Jeytun and Jygalybeg fields, developed supporting facilities and continued exploration around its existing infrastructure.
The extension of the PSA to 2035 adds a longer horizon to this established presence.
At the same time, the wider discussion around Caspian exploration is expanding to include new offshore opportunities, seismic programmes, drilling technologies and marine infrastructure — areas that will feature prominently at OGT 2026.
As a Diamond Partner of OGT 2026, Dragon Oil enters this discussion with more than two decades of experience in Turkmenistan and an operating framework extending into the middle of the next decade.
For the company and Turkmenistan, that continuity provides a foundation for further cooperation as attention increasingly turns towards how established operations, infrastructure, technology and exploration can support the long-term development of the country’s Caspian resources.
