TURKMENISTAN

INVEST 2013

Hussain Al Ansari,
COO
17-18 October 2013
Dragon Oil Today

Dragon Oil is a leading independent international oil and gas exploration,

development and production company
Headquartered in Dubai, UAE, with offices in Turkmenistan
Owned 54% by the government of
Dubai through the Emirates National
Oil Company (ENOC)
Our principal producing asset, the
Cheleken Contract Area, is in the
Caspian Sea, offshore Turkmenistan
The asset is being developed under
the Production Sharing Agreement
since 2000
Exploration assets in Tunisia, Iraq and
Afghanistan
1 Continuing to meet our targets Dragon Oil
Mission and Vision

Mission
To safely explore and develop oil and gas resources by leveraging
technology and a talented workforce as a dependable, ethical and
environmentally conscientious partner

Vision
To continue the efficient operation and optimum development of our
asset in Turkmenistan, with a vision of reaching a production rate of
100,000 bopd in 2015 and maintaining the plateau for a minimum
of five years from 2016
To achieve additional and significant production and reserves growth

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The Cheleken Contract Area

13 years of production growth

Excellent management of reserves
and infrastructure development

Continued investment in and

N DZHYGALYBEG
(ZHDANOV) FIELD
ZH 60

development of our people

ZH 04 ZH 21
ZH B ZH 31

12 ZH 25 ZH A
TURKMENISTAN
ZH 27
BLOCK1
BLOCK1 BLOCK2
20
GOSP
BLOCK3

DRAGON
LAM 28 LAM75 LAM 86 OIL CAMP
LAM 21 30
LAM A 30 CPF
LAM B
LAM 63 LAM 10 TRUNKLINE
LAM 04 BLOCK4 KARAGEL
LAM C
TANK

LAM 13
CASPIAN SEA FARM

LAM 22
ALADJA
JETTY
DZHEITUNE (LAM) FIELD Export

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Achievements since 2000

Impressive gross production growth since the commencement of

the Production Sharing Agreement in 2000

Organic 2P oil and condensate reserves replacement of 190%

against cumulative gross production

Capital investment of over US$2.7bn

Refurbishment and extension of inherited infrastructure
Construction and installation of new infrastructure offshore and
onshore
84 new wells completed

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Gross Production Growth

100,000
Gross average daily crude Average gross production
90,000 oil production, bopd annual growth

21%
80,000

70,000

60,000 2015 gross production

target
50,000

40,000 100,000 bopd

30,000

20,000

10,000

Offshore platform.

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Capital Investment

3.00
US$2.7bn Onshore and offshore
Cumulative capital investment
2.50 investment, US$bn
US$2.7bn
2.00
Operating costs over the
period
1.50
US$0.6bn
1.00

0.50

0.00
2000 2002 2004 2006 2008 2010 2012 Offshore platform.

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Reserves Replacement

700 Reserves replacement

over 12 years
600

500
141
267
190%
400 Reserves replacement in
677 2012
300

200
551
180%
100

-
2000 Cumulative Reserves 2012 Year
Original Production Additions End
Reserves Reserves Platform-based drilling rig.

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Offshore Infrastructure Development

Eight new platforms constructed and installed in the Dzheitune (Lam)

and Dhzygalybeg (Zhdanov) fields
Four wellhead and production platforms: Lam A, B and C and
Zhdanov A
Three gathering blocks: Block-1, 2 and 4
One accommodation platform to complement the Dzheitune (Lam)
22 production platform
Nine platforms refurbished and/or extended
in both fields, including structural upgrades
and additional slots: Lam 4, 10, 13, 21, 22, 28,
63 and A; Zhdanov 21 and 60
Over 80 km of in-field pipelines installed
40 km 30-inch trunkline completed Offshore platform.

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Onshore Infrastructure Development

Central Processing Facility

Built the Central Processing facility with the initial processing capacity of
50,000 barrels of fluids per day
Todays handling capacity is 100,000 barrels of fluids and 220 mscfd of gas

Oil Storage
Total oil storage capacity of 300,000 barrels
Plans to quadruple the storage capacity

Export Facility
Expansion of the jetty allows simultaneous loading of two tankers
Dredging of the habour area

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Future growth and development

Production target of 100,000 bopd in

2015 and plateau at this level for at
least five years thereafter
Commensurate onshore and offshore
infrastructure expansion and 30-inch trunkline.

development
Deployment of significant jack-up and
platform-based rig capacity
Gas monetisation centred on extraction
of condensate at a GTP Central Processing Facility.

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Infrastructure: Current and Near-Term Development

Dzhygalybeg (Zhdanov) A platform: drilling to

commence in 4Q 2013
Dzhygalybeg (Zhdanov) B platform is being assembled
Offshore platform. Tendering to select contractors to construct
a number of platforms in the Dzheitune (Lam) field
has progressed
EPIC contractor to quadruple our crude oil storage
capacity by 2016 selected
Offshore platform.
Tendering to select a contractor to build another
30-inch trunkline has commenced
Work is ongoing on partial replacement of two existing
12-inch pipelines
Crude oil storage tanks.

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Rig Deployment

ANNUAL
STATUS DRILLING CAPACITY
Contracted until
Jack-up rig 1 4-5 wells
May 2015

Contracted to complete
Land rig 1 4-6 wells
another 3 wells

Contracted to start drilling

Land rig 2 and 3 5-6 wells
in 4Q 2013 and 2014

Neptune rig Due in 4Q 2013 5-6 wells

Caspian Driller Due at the end of 2013 5-6 wells

Offshore drilling rig.

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Secondary Oil Recovery

Pilot water injection project

commenced in the Dzheitune
(Lam) 75 area
Initial results expected in the
next six months
Similar activities are planned in
the Dzheitune (Lam) 13 area
Potential to increase reserves,
increase production rate and
extend plateau
Use of artificial lift in the form
of jet pumps

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A Responsible Operator

LTIF million hours

3.00 7.0
Total number of hours
2.50
2.48 worked 6.0

2.02 5.0
2.00 1.90
1.64 4.0
1.46
1.50 1.30 1.26
3.0
1.00
2.0

0.50
Lost time incident frequency 1.0

0.00 0.0
2006 2007 2008 2009 2010 2011 2012
Lost Time Incident Frequency is the number of Lost Time Incidents per year divided by the total number of hours worked
(in millions) during the same period.

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A Responsible Operator

The Group has ISO 9001, 14001 & OHSAS 18001 certification:
Quality Management System complying with ISO9001:2008 implemented
A framework for conducting business in an environmentally responsible
manner established under ISO 14001
A framework for providing a safe and healthy working environment
established under ISO 18001

HSE training.
HSE training. Dragon
Dragon Oil
Oil employee.
employee.

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Investment in People
Our Talent
Over 1,550 professional originating
from 50 countries
83% come from Turkmenistan
Attractive career opportunities
Dragon Oil employee.
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Training and Development
In-house and external training
programmes with particular focus on
national employees
Partnerships with educational
institutes in the region
Assistance with higher education
tuition fees
Training.
Dragon Oil
Investment in Communities - Polyclinic

Major c.US$5mn project completed: polyclinic building and

related infrastructure
Inauguration took place in March 2013

2011: concept stage. 2012: construction. 2013: completion.

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Conclusion

Continued growth of Dragon Oil

and our excellent performance
are made possible thanks to
our truly successful partnership
with the Government of Turkmenistan

Thank you
18 Continuing to meet our targets Dragon Oil