Dragon Oil (LON:DGO) announced today it is holding talks with Naftiran, a subsidiary of the National Iranian Oil Company - regarding a new swap agreement or extending the existing agreement. Since the start of the Production Sharing Agreement (PSA), the independent oil development and production company with principal production and exploration interests are located in the Cheleken Contract Area in the Caspian Sea, offshore Turkmenistan, has marketed the majority of its entitlement barrels through a 10-year crude oil swap agreement with Naftiran. In 2009, Dragon Oil sold approximately 90% of its entitlement barrels through this marketing route but the term has now expired.
Even though there are alternative marketing routes in place; in 2009 Dragon Oil exported 10% via Baku, Azerbaijan, the company say they are currently negotiating with Naftiran in relation to a new swap agreement or extending the term of the existing swap agreement. However, they emphasised that there is no certainty over the outcome of these negotiations and that it is currently utilising the alternative route through Baku to market the oil. The board added that going forward, Dragon is confident that there is sufficient capacity in its existing and other marketing routes to satisfy current production.
About the Author
Stockopedia News
0 comments
