• Independent oil development and production company headquartered in Dubai. Majority owned by the Emirates National Oil Company (ENOC), owned by the Government of Dubai.
  • The company's main producing asset is in the Chelken area of the Caspian Sea off the coast of Turkmenistan.
  • A production sharing agreement was signed with a state agency of the Government of Turkmenistan in May 2000 (the “PSA”). The PSA has a 25-year term which expires in May 2025 with an exclusive right on the part of Dragon Oil (Turkmenistan) Limited to negotiate an extension for a further period of not less than 10 years.
  • Share price is down by about 80% since July. Based on what I have read, there seem to be 2 factors at work:

i) The decline in the oil price - so much for Goldman's claim that oil is going to $250!

ii) The fact that its options for pipeline routes out of the Caspian Sea are pretty screwed up. According to this article (http://tinyurl.com/6jy3xe), It either depends heavily on the Iranian port of Neka or there's a pipeline starting on the Azerbaijan coast on the other side of the Caspian Sea but that goes through George which isn't feeling too stable right now.

Over the medium term. though, this looks like it should recover... Anything else at work here that I am missing?

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