Dragon Oil, the oil firm controlled by Dubai’s ENOC, has put itself forward for bidding for oil rights in Afghanistan.
According to a report in the National, the London listed independent sees Afghanistan as “promising.” The Afghan Ministry of Mines has put six oil blocks up for tender in the Afghan-Tajik Basin in Northern Afghanistan, near the city of Mazari-Sharif.
Last week Dow Jones reported that ExxonMobil had submitted a request to bid to the Afghan Ministry of Mines. Kuwait Energy, the Kuwaiti private sector explorer with which Dragon Oil has partnered at block 9 in Iraq, is also in the running.
China’s CNPC already holds an exploration contract for oil and gas prospects at the Amu Darya basin, budging out Petroceltic.
Dragon Oil’s filing will give it access to historical seismic and well log data.
The company’s chief interests are in the Cheleken Contract Area in Turkmenistan, where it holds a 100% stake, and is targeting a production increase of 15% in 2012 to around 70,000 barrels a day. Dragon Oil is also in the middle of returning $200 million to shareholders through a share buy back program.
The security issues in Afghanistan are well documented. There are also political risk concerns as incumbent President Hamid Karzai prepares to gives way after an election in 2014.
