7th Mar 2006 09:14
Dragon Oil PLC07 March 2006 Dragon Oil Plc 07 March 2006 PRESS RELEASE DRAGON OIL PLC ("Dragon" or the "Company") OPERATIONAL UPDATE Dragon today announces the following update in respect of its operations in theLAM field, in the Cheleken Contract Area, offshore Turkmenistan. On 29 January 2006, one of the Company's LAM field feeder pipelines becameblocked, between the LAM 22 well head platform and the Block 2 riser platform,by a large volume of paraffin wax in the pipeline. Initial attempts to treatthe blockage were not successful and subsequent measures were inhibited byweather and equipment availability. However, a significant amount of paraffinwax and other waste material has been removed from the blocked pipeline at theBlock 2 riser platform. Dragon will continue to treat the blockage withspeciality chemicals to clear the blockage. Dragon will lay a new 8-inch 21/2kilometre pipeline between the LAM 22 and LAM 10 platforms as an alternativeflow system for production from the LAM 22 platform. This new feeder pipeline isexpected to be completed and commissioned by early April. Operations on the LAM 22 platform are currently temporarily suspended resultingin a total short term daily loss of production of approximately 5,600 bopd. Further information on this matter will be provided in due course. Noenvironmental impact or damage has occurred, and it is not anticipated therewill be any. The Chairman, Hussain M. Sultan, commented: "I am very disappointed that Dragon has experienced a temporary blockage in oneof its feeder pipelines. The resolution of this problem has been somewhathampered by adverse weather conditions and also due to the fact that certain ofthe chemicals required to treat the blockage were not readily available in theregion. I am confident that this blockage will be cleared shortly andproduction from LAM 22 will recommence with improved flow rates over those beingpreviously achieved due to an increase in pipeline pressure. Dragon will continue to work on improving and upgrading all of its pipelineinfrastructure throughout 2006 and is shortly due to announce results from itscontinuing workover programme and also the results from drilling and testing ofthe LAM 10/113 well." Ends Enquiries: Citigate Dewe Rogerson +44 20 7638 9571 Martin Jackson This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
DGO.L