Dragon Oil: Fueling Global Energy from Dubai

Dragon Oil Holdings LLC is an independent international oil and gas exploration, development, and production company. While headquartered in Dubai, the company remains strategic both onshore and offshore, while making more emphasis on its operations offshore in the Caspian Sea in the Cheleken oil field with different operational interests offshore from Turkmenistan. Throughout the years, this company explored new fields across the global oil-industry horizon, particularly in North Africa and the Middle East regions.

A wholly-owned subsidiary of the Emirates National Oil Company, Dragon Oil is an integral part of the energy infrastructure in the emirate of Dubai. Its long-term PSA with the government of Turkmenistan and the steps it is taking to increase its production capacity have placed it squarely in the global energy dynamic.

The story of Dragon Oil begins in 1971, when Oliver Waldron founded the company in Ireland as “Oliver Prospecting & Mining Co. Limited.” For over two decades, the company remained wholly Irish-based before it changed its name to Dragon Oil in 1993. The most strategic investment made by the company was acquiring a stake in the Cheleken oil field in Turkmenistan, an asset on which the operations of the company would later depend. A key development was the acquisition of a majority stake in Dragon Oil by the Emirates National Oil Company, transferring the headquarters of the company from Ireland to Dubai. That also meant that the company could avail itself of the facilities and networks of ENOC while keeping its focus on the exploration and production of energy.

In 1999, Dragon Oil signed a PSA with the government of Turkmenistan to redevelop the Cheleken oil field, located in the Caspian Sea. The PSA forms the core of its operations because the company has produced more while modernizing facilities in the field. The PSA Company, Dragon Oil, has developed the field to the extent that in 2015 production rates have reached 100,000 barrels per day. The estimated reserves for the field include 663 million barrels of oil and condensates, as well as around 1.3 billion cubic feet of gas. All these reserves have helped Dragon Oil establish itself as the largest producer in the area.

Although its core operations take place in Turkmenistan, Dragon Oil has branched out to various other countries. Between 2005 and 2015, Dragon Oil acquired several explorations licenses in Algeria, Tunisia, Iraq, Egypt, and Afghanistan. The exploration department of the company operates these assets, which are operated partly as joint ventures.

In 2015, the company fully acquired Dragon Oil after purchasing the remaining 46% stake for a deal valued at £3.7 billion. ENOC strengthened its position in upstream oil exploration and production while giving Dragon Oil the safety net to go on aggressive expansion plans. The company has made serious investments in exploration activities in North Africa and the Middle East but particular attention is paid to oil blocks in Iraq, Algeria, and Tunisia.

Dragon Oil inked a five-year deal with Topaz Energy & Marine for six offshore vessels to be delivered in 2017. Of the vessels, five will be anchor-handlers and one an emergency recovery response vessel. Critical vessels for Dragon Oil’s offshore operations, the company aims to nearly triple production in a few years. Its production target forms part of a bigger investment approach in the company. In its $13 billion upstream investment drive, the company promised to triple its production by 2025. It has a challenging expansion plan of increasing production capacity and diversifying into new energy fields to become a leading energy company.

Strong leadership by Chairman Sheikh Hamdan bin Rashid Al Maktoum and Vice Chairman Saeed Mohammed Al Tayer illuminate the bright presence of Dragon Oil. Under the stewardship of CEO Ali Rashid Al Jarwan and Assistant CEO Faisal Rabee Al Awadhi, Dragon Oil has constantly improved its portfolio and march upwards with increasing operations. Because of its headquarters in Dubai, leadership can balance the technical urge on the side of satisfying fuel demand and the flexibility to contemplate the intricacies involved in opening or operating in the global energy market. Strategic decision-making and vision has meant decades of growth and success.

All these bode well for the future of Dragon Oil as it continues to discover new markets and increase its production capacity. Its operations are located in strategic regions, including North Africa, the Middle East, and Central Asia, where demand for oil and gas is rising.