New Horizons

Company Profile 2016

About us
Dragon Oil is an upstream oil and gas
exploration, development and production
company. The Group has a producing asset
in Turkmenistan and exploration assets in
Iraq, Algeria, Tunisia, Afghanistan and Egypt.
Our headquarters are in Dubai, UAE.
Dragon Oil is a privately held and wholly
owned subsidiary of Emirates National Oil
Company (ENOC) L.L.C.

Contents
1 Our leaders
2 Introduction
4 Operations at a glance
6 Chairman’s statement
8 CEO’s statement
12 Board of Directors
14 Our assets
16 Our history in brief
18 Market overview
20 Operations in Turkmenistan
22 Exploration assets
24 Sustainability
34 Enterprise Risk Management
38 Senior management
40 Corporate Governance
41 Glossary/Definitions/
Abbreviations
Our leaders

H.H. Sheikh Khalifa H.H. Sheikh Mohammed

Bin Zayed Al Nahyan Bin Rashid Al Maktoum
President of the UAE and Vice-President and Prime Minister
Ruler of Abu Dhabi of the UAE, and Ruler of Dubai

H.H. Sheikh Hamdan H.H. Sheikh Hamdan

Bin Mohammed Al Maktoum Bin Rashid Al Maktoum
Crown Prince of Dubai Deputy Ruler of Dubai and
UAE Minister of Finance

Dragon Oil Company Profile 2016 1

2 Dragon Oil Company Profile 2016
Introduction
Dragon Oil has been the sole operator of a
producing block in the Caspian Sea, offshore
Turkmenistan, since 2000 and has a portfolio
of exploration assets in Africa, the Middle East
and Central Asia.

Dragon Oil Company Profile 2016 3

Operations at a glance
Dragon Oil’s principal producing asset is the Cheleken
Contract Area in the eastern section of the Caspian Sea,
offshore Turkmenistan. We have exploration assets in
Iraq, Algeria, Tunisia, Afghanistan and Egypt.
Turkmenistan
Production
The Cheleken Contract Area
covers approximately 950km 2
and comprises two offshore oil and gas
fields, Dzheitune (Lam) and Dzhygalybeg
(Zhdanov), in water depths of between
eight and 42 meters. The area is being
developed under a Production Sharing
Agreement (PSA). Dragon Oil holds a
100% operatorship in the Cheleken
Contract Area.
Ashgabat
Our administrative office is in the capital
of Turkmenistan, Ashgabat.
UAE
Dubai
Dragon Oil’s Group headquarters
are located in Dubai, where senior
management, including the Chief
Executive Officer Dr Abdul Jaleel
Al Khalifa are based.
UK
London
Dragon Oil has a representative office
in London.
Ireland
Dublin
Our registered office is in Dublin.
Iraq
Exploration
Block 9 is located in the Basra
province onshore Iraq and
covers an area of 866km 2 . Kuwait
Energy Company is the operator for
Block 9, participating with a 60%
contractor share, while Dragon Oil has
30% and Egyptian General Petroleum
Corporation has 10%.
4 Dragon Oil Company Profile 2016
Algeria
Exploration
Dragon Oil in partnership with
ENEL Trade S.p.A (“Enel”)
explores two onshore exploration
perimeters, Tinrhert Nord Perimeter
(Dragon Oil 70% paying interest and
operator, Enel 30% paying interest),
which covers an area of 2,907km 2 ,
and Msari Akabli Perimeter (Dragon Oil
30% paying interest, Enel 70% paying
interest and operator) with an area
of 8,096km 2 .
Algiers
Dragon Oil has an office in Algiers.
Tunisia
Exploration
The Bargou Exploration Permit,
located in the Gulf of Hammamet
in the Mediterranean Sea, offshore
Tunisia covers an area of 4,616km 2
in water depths of 50 to 100 meters.
The Bargou Joint Venture comprises
Dragon Oil (55%), Cooper Energy (30%,
operator) and Jacka Resources (15%).
Egypt
Exploration
The East Zeit Bay (Dragon Oil
100%) is located offshore
in the prolific southern Gulf of Suez
region. The block covers an area of
93km 2 and lies in shallow waters
ranging in depth from 10 to 40 meters.
Cairo
Dragon Oil has an office in Cairo.
Afghanistan
Exploration
Dragon Oil has interest in two
onshore exploration blocks,
Sanduqli (2,583km 2) and Mazar-i-Sharif
(2,715km 2). The participating interest of
Dragon Oil (operator in Sanduqli block),
Turkiye Petrolleri A.O. (TPAO) (operator
in Mazar-i-Sharif block) and the
Ghazanfar Group is 40%, 40% and
20%, respectively.
Mazar-i-Sharif
Dragon Oil has an office in Mazar-i-Sharif.
 RUSSIA

DUBLIN
UK
IRELAND
LONDON
CENTRAL
EUROPE ASIA
KAZAKHSTAN

UZBEKISTAN
BLACK SEA CASPIAN
SEA
AZERBAIJAN
TURKMENISTAN
TURKEY
ASHGABAT

ALGIERS SYRIA MAZAR-I-SHARIF

TUNISIA MEDITERRANEAN SEA
AFGHANISTAN
IRAN
ALGERIA IRAQ
CAIRO

PAKISTAN
LIBYA EGYPT

SAUDI DUBAI
RED ARABIA
SEA
OMAN
UAE
ARABIAN SEA

YEMEN
MIDDLE EAST

AFRICA

PRODUCTION SITE

EXPLORATION SITES

OFFICES

Dragon Oil Company Profile 2016 5

Chairman’s statement
Only by working together we will succeed – and with the
continuing support of ENOC I am confident that the future
will bring us further progress.
Mohammed Al Ghurair
Chairman
US$5.1bn
Total investment in the
development of the Cheleken
Contract Area
100,000bopd
Production level reached
for the first time in 2015
6 Dragon Oil Company Profile 2016
Dear Shareholder
2015 was a year in which we continued
to deliver strong production growth
and maintained a healthy financial
position. It was one in which Dragon Oil
experienced a change of ownership
following the acquisition of the Group
in October by our long-standing major
shareholder, Emirates National Oil
Company Ltd. (ENOC) L.L.C. (“ENOC”).
And it was also a year in which the
price of crude oil fell to a level that
has only occasionally been seen
over recent decades.
As a Group we are sufficiently well
funded, both in terms of cash
reserves and shareholder support,
to withstand this downturn and we
remain committed to the pursuit of
growth and diversification.
Nonetheless, we believe there is a need
to optimize costs, improve productivity
and maximize our efficiency. Key to this
is motivating our employees to suggest
ideas that will save us money – and then
implementing those ideas.
I would like to thank our people for their
efforts and the help they have provided
during the year to address the
challenges that we have faced.
Our strategy
We continue with our strategy, which
remains focused on three objectives:
• developing the Cheleken Contract
Area in the Caspian Sea offshore
Turkmenistan;
• monetizing our gas assets in
Turkmenistan; and
• investing in our existing exploration
assets and pursuing further
diversification through acquiring
development assets.
We have steadily increased production
from the Caspian Sea and remain on
target to deliver strong production for
the next years. We are well advanced
in our planning for the building of a
Gas Treatment Plant at our operations
base in Hazar, Turkmenistan. And while
investment in exploration activity
has, of necessity, been reduced in the
current low crude oil price environment,
we have now begun production in Iraq
and will continue to pursue attractive
development acquisition as
opportunities arise.
Dragon Oil has excellent relationship
with the government of Turkmenistan
through our operatorship of the
Cheleken Contract Area since 2000
and extensive corporate social
responsibility work for the benefit of
the host community. Dragon Oil actively
participates in related cultural and
investment events, which promote the
existing strong relationship between
the UAE and Turkmenistan.
The Board continues to place
considerable emphasis on high
standards of corporate governance
and recognizes our role in providing
clear leadership and direction on all
matters relating to the business of the
Group. In 2016, we will be publishing
an updated Code of Conduct, which
defines our corporate values and
describes to all stakeholders how
we do business. This covers how we
behave with each other, with host
governments, our partners, communities,
suppliers and competitors.
Only by working together we will
succeed – and with the continuing
support of ENOC I am confident that
future will bring us further progress.
Mohammed Al Ghurair
Chairman
Our strategy
Our strategy is focused on three elements: to
continue the development growth of the Cheleken
Contract Area; to monetize opportunities for gas
in Turkmenistan; and to become a multi-asset
company through our diversification strategy.

1
Continued development of the
Cheleken Contract Area
Continued development of the Cheleken
Contract Area is the key strand of our strategy.
We have steadily increased production from
about 7,000 barrels of oil per day (bopd) in
2000 to close to 93,000 bopd in 2015 and
remain on target to deliver strong production
in the future. Since 2000, Dragon Oil has been
building and expanding onshore and offshore
production facilities and our objective is to
continue safe and efficient operations, optimize
development of the area and make a positive
impact on the community to ensure
sustainability of our business.

2
Gas monetization
Monetization of our gas asset in Turkmenistan
remains a priority – and we are investing in a
Gas Treatment Plant that will allow us to strip
condensate and give us capability to deliver
export quality gas.

3
Diversification
Our goal is to diversify our portfolio of assets
in regions of interest to us and to become a
multi-asset company. Our expertise lies in
development of proven reserves; at the same
time we have been investing in building solid
exploration capabilities. We continue to
search for right-fit development assets.
Chief Executive Officer’s statement
We have grown production, built infrastructure, started
early production in Iraq, and consistently delivered on
our promises to both our stakeholders and to our host
communities and governments.
Dr Abdul Jaleel Al Khalifa
Chief Executive Officer
Production from Block 9 in
Iraq began just nine months
after discovery and we are
proud to have been able to
have such a fast-track
project executed by our
partner in record time.
8 Dragon Oil Company Profile 2016
Dragon Oil has been operating in
Turkmenistan under a Production
Sharing Agreement since 2000 and
has grown into a multi-asset upstream
company. We are a privately held and
wholly owned subsidiary of Emirates
National Oil Company (ENOC) L.L.C.
Over time, we have grown production,
built infrastructure, expanded our
portfolio of exploration assets, and
consistently delivered on our promises
to both our stakeholders and to our
host communities and governments.
Among the highlights of 2015, we have
seen steady progress towards our
long-expressed objective of producing
100,000 bopd from our operations in
Turkmenistan. We have also begun
production in Iraq following our
exploration successes in 2014.
The upstream oil and gas industry has
been affected by the drastic fall in the
price of crude oil, and the industry is
taking steps to mitigate this impact.
The huge drop in oil prices since their
2012 peak, combined with continuing
price volatility, poses significant
challenges for all oil companies.
Our current focus is on cost efficiency
and that will continue throughout the
coming year. However, these actions
will not affect our ability to continue
production growth.
A major development for Dragon Oil in
2015 was the change of ownership of
the company resulting in de-listing from
the Irish and London Stock Exchanges.
ENOC
Dragon Oil has had a long-standing
relationship with the Emirates National
Oil Company (ENOC) L.L.C., which,
until summer 2015, was the Group’s
largest shareholder.
Following a strategic decision to
become a fully integrated global oil
and gas company, ENOC acquired the
remainder of Dragon Oil by October
2015. ENOC sought to diversify its
portfolio to become a leading regional
integrated oil and gas group by
leveraging on Dragon Oil’s upstream
operating experience.
We are pleased to be part of ENOC
and we look forward to working
together with them to create value
for all stakeholders.
Cost optimization
In today’s environment the oil and gas
industry is optimizing costs, deferring
discretionary expenditure, rationalizing
the allocation of capital and
restructuring operations.
We are no different to the rest of
the industry. We are engaging with
suppliers and contractors to get better
terms and pricing; we are working on
cost optimization and cost efficiency
measures, aiming to make best use
of available resources; and we are
deferring discretionary investments.
PEOPLE

40+
Nationalities – we hire talented
people from all over the world

Drilling and production

Gross production was close to 93,000
bopd over the year, a substantial
increase on the level of the previous
year. This was as a result of completing
new wells and adding perforations in
new zones and new completions, which
allowed us to increase our production
in a highly cost-effective manner.

Significantly, we reached the 100,000

bopd mark in mid-2015 for the first
time. Our target has long been to
consistently hit this figure throughout
the period 2016-20, and we hope this
will be achieved.

For the first time, the Dzhygalybeg

(Zhdanov) A/103 well drilled by
Dragon Oil to penetrate and test
CH-12, produced at a high rate of
approximately 3,640 bopd and wellhead
pressure of about 3190 psi at 24’/64’
choke size. Unfortunately, it was sour
with H2S concentration of 620 ppm
mol%. Hence, this section was isolated
pending completion with proper
equipment in the near future.

Marketing
The Caspian Sea is landlocked and has
limited infrastructure and marketing is
always challenging.

However, in 2015, we reduced the

discount to Brent prices considerably –
this helped us in the low crude oil price
environment throughout the year – and
we worked with new off-takers to deliver
our oil through both Baku in Azerbaijan
and Makhachkala in Russia. We reached
a new arrangement on favorable terms
and will continue to use both routes.

In 2016, sanctions were lifted against

Iran and the South route will be
evaluated as a potential export route.

Dragon Oil Company Profile 2016 9

Chief Executive Officer’s statement
continued
COMMUNITY
US$10mn
Annual commitment for jointly
identified social and training
projects in Turkmenistan
Gas
The monetization of gas opportunities
in Turkmenistan is one of the three key
elements of our business strategy,
and we are in the final steps to award
a contract to build a Gas Treatment
Plant in Hazar.
In December 2015, the government of
Turkmenistan commissioned its new
East-West gas pipeline, which merges
the largest fields in Turkmenistan into
a single gas transportation system.
In the same month, work also began on
the construction of the Turkmenistan-
Afghanistan-Pakistan-India (TAPI)
pipeline segment in Turkmenistan.
Diversification
Our long-term strategy to become
a multi-asset company through
diversification remains on track.
We have the option to acquire
development assets if they add value,
even at current oil price levels.
10 Dragon Oil Company Profile 2016
Iraq
In October 2015, Kuwait Energy (the
operator) announced the start of oil
production from the Faihaa-1 well – at
around 5,000 bopd. The well is in the
heart of Iraq’s oil industry in the Basra
region in the south of the country.
This project is being developed by
a consortium in which we hold a
30% stake.
Production began just nine months
after discovery.
Whilst the next well is being drilled,
more wells are planned to be drilled
in 2016 and 2017 and we are investing
in pre-development facilities.
Algeria
Exploration in Algeria remains active.
Our assets are situated close to
previously undeveloped discoveries,
and we are interpreting existing 3D
seismic data.
During the exploration period, we will
acquire 2D data, in addition to drilling
a number of wells.
Other assets
We also have continuing interests in
Egypt, Tunisia and Afghanistan. Our
operations in the Philippines have now
ceased following the drilling of a dry
well there.
People and communities
Dragon Oil seeks to be an Employer of
Choice, where we attract and develop
the best talent. We employ people of
over 40 nationalities and 93% of our
workforce in Turkmenistan are
Turkmen citizens.
In 2015, we invested US$1.8 million in
providing training courses for Turkmen
nationals. Our own Learning and
Development department conducted
many of the courses in-country,
though 40% took place outside of
Turkmenistan in, for example, Russia,
the UAE, Malaysia and India.
We are proud to offer internships and
scholarships to high-potential nationals
and university graduates in countries
where we are headquartered and
operate. At the moment, our programs
cover Turkmenistan and the UAE and
we hope to replicate our success
wherever we go.
We also supported students at
universities in Russia, Ukraine, the
UK and Switzerland.
We have engaged a specialist
consultancy, a world leader in
training and competency development
for the gas and oil industry, to examine
and develop the competencies of
our employees.
At the same time we have expanded
our spending on and commitment to
community development projects in
Hazar, neighboring towns and beyond,
in Turkmenistan.
Outlook
The fall in the price of crude oil presents
considerable challenges for us – and for
the upstream industry as a whole.
This imposes significant pressure on
us to manage costs, in order to fund
ongoing development and exploration
expenditure.
Nonetheless, we believe that Dragon Oil
is well placed to deliver positive strategic
contribution to ENOC and the Government
of Dubai in the long term.
Dr Abdul Jaleel Al Khalifa
Chief Executive Officer
Our mission is to safely
explore and develop oil and
gas resources by leveraging
technology and a talented
workforce as a dependable,
ethical and environmentally
conscientious partner.

11
Board of Directors
Dragon Oil’s Board of Directors draws on the solid
experience of its members in the oil and gas industry,
oil services, and finance to further the Group’s success.
01. Mohammed Al Ghurair
Non-executive Chairman
Mr Al Ghurair is the Non-executive
Chairman for the Group. He has been
serving on the Board of Directors of
Dragon Oil since his appointment on
25 April 2007 and has been Chairman
since 26 September 2008. With
over 30 years working in business
management for a variety of companies
in different jurisdictions, Mr Al Ghurair
brings invaluable experience and
leadership in crafting the direction and
strategy for an established company,
such as Dragon Oil.
Mr Al Ghurair has a degree in Mechanical
Engineering and is a prominent Director
in a number of leading companies in
the Middle East, including the Saudi
International Petrochemical Company
and National Cement Company, UAE.
02. Dr Abdul Jaleel Al Khalifa
Executive Director and CEO
Dr Al Khalifa is the Executive Director
on the Board since 26 September 2008
and has been serving as the CEO of
Dragon Oil since 1 May 2008.
Dr Al Khalifa has more than twenty five
years of management and technical
experience, which he gained from having
worked and managed a wide range of
upstream organizations. Dr Al Khalifa has
a doctorate in petroleum engineering
from Stanford University and is a
respected public speaker on the oil
and gas industry. He served as 2007
President of the International Society
of Petroleum Engineers.
Dr Al Khalifa has a keen interest in
humanitarian efforts, being a founder
member of the industry’s Humanitarian
Support Alliance NGO (IHSAN-H2O),
which aims to encourage the formation
of a global alliance committed to
empowering disadvantaged
communities worldwide.
12 Dragon Oil Company Profile 2016
03. Ahmad Sharaf
Non-executive Vice-Chairman
Mr Sharaf is the Non-executive Vice-
Chairman for the Group, a position which
he has held since 2008. Mr Sharaf earned
B.Sc. and M.Sc. in Petroleum Engineering
from the Colorado School of Mines
and MBA from Duke University’s Fuqua
School of Business. Mr Sharaf brings
specialist knowledge with expertise in
evaluating and critiquing new business
venture opportunities in the oil and
gas sector. Mr Sharaf has worked in
the international upstream oil and gas
industry for over 20 years, including with
ConocoPhillips from 1990 – 2005 as well
as for Dubai Holding in various leadership
positions in the energy, health care and
real estate sectors.
Mr Sharaf is the Chief Executive Officer
of Dutco Energy, a division of the Dutco
Group, dedicated to positioning and
expanding the Group’s global interests
in the oil and gas sector. Mr Sharaf
is Chairman of the Dubai Mercantile
Exchange (DME) and also chairs both
the DME’s Corporate Governance and
Compensation Committees. Mr Sharaf
is an active Member of Duke University
Fuqua Business School’s Board of
Visitors. He is a director of the Board of
Emirates National Oil Company (ENOC)
L.L.C. and serves as a Member of ENOC’s
Audit Committee and Chairman of its
Investment Committee.
Mr Sharaf is Chairman of the
Nominations Committee at Dragon Oil.
04. Ahmad Al Muhairbi
Non-executive Director
Mr Al Muhairbi is a Non-executive
Director at Dragon Oil since 22 May
2007 and has a strong background in the
operational aspects (field development
and drilling programs) of the upstream
oil and gas business. Mr Al Muhairbi
has been involved in petroleum field
development and production since
1988 for ADNOC, ARCO Dubai Inc. and
previously Margham Dubai Establishment
and then with Dubai Supply Authority.
In December 2012, Mr Al Muhairbi
was appointed the Secretary General
of the Dubai Supreme Council of
Energy in charge of supervising the
implementation of Dubai Integrated
Energy Strategy 2030. He also serves
as a director on the Regulatory and
Supervisory Bureau for Electricity &
Water Sector for the Emirate of Dubai.
He  has been appointed to the Board
of  Directors of Etihad Energy Services
Company (Etihad Esco), a 100% subsidiary
of Dubai Electricity and Water Authority.
He has also been appointed as a Board
member to the ENOC Board of
Directors since 12 July 2015. Using
his comprehensive knowledge of well
technology as well as his petroleum
engineering education, he focuses
on the operational and technical
recommendations submitted for review
by the Board and in particular on field
development and drilling program plans.
Mr Al Muhairbi holds B.Sc. in Petroleum
Engineering from the University of Texas,
Austin, USA.
Mr Al Muhairbi is a member of the
Nominations Committee and Chairman
of the Remuneration Committee.
05. Saeed Al Mazrooei
Non-executive Director
Mr Al Mazrooei is a Non-executive
Director at Dragon Oil since 22 May 2007
and has significant experience within the
upstream industry with a focus on the
development and production of gas
assets. Notably, he joined Arco International
in 1985 to work on various aspects
of their gas business and then
Mr Al Mazrooei played a central role in
the development of the Dolphin Project,
whose aim was to transport gas from
Qatar to the UAE for power generation
purposes. He is a Board Member of
Emirates Nuclear Energy Corporation
(ENEC), bringing further leadership
experience to the Dragon Oil Board.
Mr Al Mazrooei has M.Sc. in Gas
Engineering and Management
from Salford University in the UK.
He is Chairman of the Audit Committee.
06. Thor Kristian Haugnaess
Non-executive Director
Mr Haugnaess is a Non-executive
Director at Dragon Oil since 20 February
2012. He has been working in the
upstream oil and gas industry for
32 years, predominantly on the oilfield
services side with the Schlumberger
group of companies in a variety of
management roles. Between 2003 and
2006, Mr Haugnaess was the President 01 02
for the Norwegian Ultra Deep Water
drilling Contractor, Ocean Rig ASA, which
was listed on the Oslo Stock Exchange.
Mr Haugnaess is Vice Chairman of
Visuray Plc and alternate Non-executive
Director at XCounter AB.
Mr Haugnaess has MSc in Petroleum
Technology from the University
of Trondheim (NTNU) in Norway.
He is a member of the Audit,
Remuneration and Nominations
Committees.
03 04

07. Justin Crowley

Non-executive Director
Mr Crowley is a Non-executive Director
at Dragon Oil since 9 September 2013.
He had an extensive audit career with
PricewaterhouseCoopers and with
two UK-based mid-tier auditing firms
as a Director prior to joining BDO
International. His working experience
covers external audit services; internal
audit, risk management, corporate
governance, compliance audit; as well 05 06
as forensic audit and corporate advisory.
Mr Crowley is an Audit and Assurance
Partner at BDO International specialising
in regulated industries, the oil and gas
sector and other manufacturing and
industrial sectors. He is a Fellow of the
Institute of Chartered Accountants in
England and Wales.
Mr Crowley has B.Sc. in Economics from
the London School of Economics and
Political Science, UK.
He is a member of the Audit and
Remuneration Committees. 07

Dragon Oil Company Profile 2016 13

14 Dragon Oil Company Profile 2016
Our assets
Dragon Oil has a solid track record of delivering
organic growth in production and reserves from
our key asset in Turkmenistan and we have been
continuously re-investing in its development.
At the same time we selectively add exploration
assets to our portfolio.

Dragon Oil Company Profile 2016 15

Our history in brief
At the heart of Dragon Oil’s success is the hard work and
dedication of our talented people. We continue to deliver on
our promises and create more value for all our stakeholders.

2001, 2003, 2005

Dragon Oil raises funds
Dragon Oil raises funds in
the market to finance capital
investment in the Cheleken
Contract Area.

1998
Emirates National
Oil Company
Emirates National Oil
Company Ltd. (ENOC) L.L.C.
acquires a stake in
Dragon Oil and subsequently
becomes a majority
shareholder in Dragon Oil.
1999
Production Sharing
Agreement
A Production Sharing
Agreement for the
redevelopment of the 2009
Cheleken Contract Area in
the Caspian Sea, offshore Landmark production
Turkmenistan, is signed level
between the State Agency Dragon Oil hits a landmark
for the Management and production level of 50,000
Use of Hydrocarbon bopd at the turn of
Resources at the President 2009‑2010.
of Turkmenistan and Dragon
Oil (Turkmenistan) Ltd.

16 Dragon Oil Company Profile 2016

 2014
Algeria
Dragon Oil in partnership
with Enel is awarded two
onshore exploration
perimeters in Algeria and
makes two successful oil
2010 discoveries in Block 9,
Iraq, in partnership with
Milestone upgrade Kuwait Energy.
Dragon Oil completes
a milestone upgrade of
infrastructure having laid a
new 30-inch 40km offshore
and onshore trunkline to
bring oil and gas ashore, as
2015
well as having expanded the Emirates National
Central Processing Facility. Oil Company
Emirates National Oil
Company Ltd. (ENOC) L.L.C.
acquires the remaining 46%
in Dragon Oil.

2012
Iraq, Afghanistan
Dragon Oil, in consortia of
companies, wins onshore
2011 exploration blocks in Iraq
and Afghanistan.
Tunisia
Dragon Oil signs a farm-in
agreement for a block
in Tunisia.

2013
Egypt
Dragon Oil wins an offshore
exploration block in Egypt.

Dragon Oil Company Profile 2016 17

Market overview
The combination of robust crude oil supply and relatively
weak global demand can mean only one thing: crude oil
prices have fallen to their lowest levels in nearly five years.

DATED BRENT

Global oil Global oil

US$52
Dated Brent averaged US$52
production consumption
per barrel in 2015 (2014: US$99) Global oil supply expanded by 2.6mn While mature markets in the
bopd in 2015, following already Organisation for Economic Co-
significant increases in 2014 and operation and Development (OECD)
despite a fall-off in global demand. have seen consumption trending
downwards, as a result of both slowing
CHELEKEN GROSS
In 2015, the Organization of Petroleum economic growth and increasing energy
PRODUCTION
Exporting Countries (OPEC) pursued efficiency, consumption was increasing

34mn
a strategy of maintaining production in key economies outside of the OECD
at high levels. such as China, India, and Brazil.

In 2015, Dragon Oil produced
approximately 34 mn barrels
of crude oil from its operated
asset in Turkmenistan
The lifting of sanctions on Iran is likely Demand within the OECD reached
to see a further increase in global its peak in 2005. Therefore, the
supply, estimated at 1.5mn bopd subsequent slowdown in growth in
in the first half of 2016. the major developing economies has
resulted in a slower growth of demand,
The impact on investment from low hence, resulting in surplus supply of
prices has been significant. Producers crude oil. This had put pressure on
with higher costs, including those in the crude oil prices.
Arctic, the North Sea and Brazil,
deferred around US$380 billion of The world continues to need oil. But
project capex in 2015, with deepwater predicting the future is difficult, and with
projects hit hardest. More cuts are the current state of the world economy
forecast for 2016. And 2.9mn bopd it would also be unwise.
a day of liquids production and
development projects have been Sources: EIA, IEA, The Economist
deferred to early next decade.

Because oil projects have long lead

times and with the average breakeven
of delayed greenfield projects
estimated at US$62 boe, it will take few
years before this retrenchment is
reflected in reduced output.

Sources: IEA, The Economist, Bloomberg

Global oil production OECD consumption of petroleum

(mn bopd) products (mn bopd)

98 60
96
94
50
92
90
40
88
86
2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 3Q15 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15

Source: EIA Source: EIA

18 Dragon Oil Company Profile 2016

Crude oil prices
A global economic slowdown and lack
of organized position by producers
have resulted in a collapse in the price
of oil. This, combined with the volatility
of the market, is having significant
impacts on investment industry-wide
and introduces the potential for further
corporate consolidation.
Storage constraints coupled with the
existing oversupply position may
continue to keep prices unstable in the
coming months. The industry expects
a price recovery in 2H 2016 to US$50/
bbl to match the pace of inventory
draws with a gradual increase in prices
to a trading level of above US$50/bbl
in 2017.
Currency fluctuation remains a
significant factor. A strong US dollar –
in which oil is priced – puts pressure on
crude oil prices. While low oil prices are
bad news for producing countries, they
are good news for consuming countries.
Sources: BBC, CNBC, Bloomberg
Brent crude price per barrel,
2015 (US$)
80
70
60
50
40
Jan Feb Mar Apr May Jun Jul
Source: Bloomberg
Turkmenistan
Turkmenistan has the fourth largest In December 2015, the main “East-
proven gas reserves in the world – West” gas pipeline was completed
up to 17.5 trillion cubic meters – and is and commissioned.
positioned, geographically, to supply
gas to major markets in which demand It serves as a single gas transportation
is large and growing, including China system and connects all of the country’s
and South Asia, as well as Europe. major gas fields. It is over 700km long
and stretches from the far south-east
Over recent years Turkmenistan has of  Turkmenistan to the Caspian region.
diversified its gas exports, away from It has an annual capacity of 30 bcm
Russia and towards China to whom its of natural gas.
2014 exports were more than double
the 2010 level. And in December 2015, Turkmenistan has also been making
it began construction of the Turkmen progress in developing downstream
segment of the long-planned industries, including the building of
Turkmenistan-Afghanistan-Pakistan- a gas-to-liquids plant, which will
India (TAPI) pipeline. convert sizable quantities of gas into
gasoline, and the construction of an
The Asian Development Bank intends ammonia/urea plant by a Japanese-
to continue providing technical and Turkish consortium.
financial support to major investment
projects, including the construction of Sources: The Economist; BP Statistical Review
of World Energy 2015; Asian Development Bank
the TAPI. It is predicted that this 1,800km
pipeline will enable the export of up to
33 bcm of natural gas a year from
Turkmenistan to Afghanistan, Pakistan
and India over three decades – to the
likely benefit of everyone concerned.
Cumulative investment by Dragon Oil
in the Cheleken Contract Area
(US$bn)
2015 5.12
2014 4.40
2013 3.63
3.25
2012
2000-2011 2.77
Aug Sep Oct Nov Dec
Source: Dragon Oil
Dragon Oil Company Profile 2016 19
Operations in Turkmenistan
We have been successfully operating in Turkmenistan since
2000. Dragon Oil has invested US$5.1bn in expanding the
ZH 60
oil production and infrastructure in the Cheleken Contract
Area, and, as such, the Group is one of the largest foreign
investors in Turkmenistan.

ZH 21

12” ZH 25

BLOCK 1 BLOCK 2
20”

LAM B LAM 28 LAM 86

LAM 75
LAM 04

LAM A LAM 21

LAM F
LAM C LAM 13

LAM 63
LAM 10 LAM 22
LAM E

The Cheleken Contract Area
The fields, Dzheitune (Lam) and
Dzhygalybeg (Zhdanov), comprise
two elongate anticlines situated at the
eastern end of the Aspheron Ridge,
which is a prolific hydrocarbon
play extending from the Aspheron
Peninsula in Azerbaijan to the
Cheleken Peninsula in Turkmenistan.
Dzheitune (Lam) Field
The first well in the Lam field was drilled
in 1967, first production commenced in
1978. Since 2000, Dragon Oil has drilled
new wells; constructed and installed
four new wellhead and production
platforms, two accommodation and
three tie-in platforms; refurbished
and upgraded existing platforms and
performed workovers.
Dzhygalybeg (Zhdanov) Field
The initial exploration and prospecting
of the Zhdanov structure began in 1965.
The first well with commercial oil and
gas was drilled in 1966. Dragon Oil has
completed a number of successful
workovers in the Zhdanov field,
installed a new wellhead and production
platform and commenced drilling
in the field in 2014.

20 Dragon Oil Company Profile 2016

 CASPIAN SEA

ZH 31
ZH 04

ZH 27
ZH A

TURKMENISTAN
GOSP

BLOCK 3

DRAGON OIL
CAMP
30”
30”
CPF
BLOCK 4
TRUNKLINE

ALADJA
JETTY

Export
Infrastructure
Since 2000, we have been investing in
building and expanding onshore and
offshore infrastructure: in construction
of a number of platforms, CPF, tank farm
and loading facilities at the Aladja Jetty;
in the laying of a new 30-inch 40km
trunkline and associated pipelines;
as well as in continuous upgrade of
existing facilities.

Dragon Oil Company Profile 2016 21

Exploration assets
Dragon Oil is currently exploring in parts
of  North Africa, the Middle East and
Central Asia that offer opportunities
for hydrocarbon producers.
Iraq
Block 9 is located in the Basra province
onshore Iraq and covers an area of
866km 2 . Kuwait Energy is the operator
for Block 9, participating with a 60%
contractor share, while Dragon Oil has
30% and Egyptian General Petroleum
Corporation has 10%.
In May 2012, a consortium of
companies, including Dragon Oil, was
awarded an exploration, development
and production contract for Block 9 in
Iraq’s fourth bidding round. In 2014, the
partners in Block 9 in Iraq announced
the discovery of oil in two formations
in the consortium’s first exploration
well, Faihaa-1. The well was put into
production, as part of an extended
well test, in October 2015 at around
5,000 bopd. We are investing in
pre-development facilities.
22 Dragon Oil Company Profile 2016
Algeria
In 2014, Dragon Oil in partnership with
ENEL Trade S.p.A. (“Enel”) was awarded
two onshore perimeters in Algeria.
The Tinrhert Nord Perimeter (Dragon Oil
70% paying interest and operator,
Enel 30% paying interest) is in the
Illizi Basin in Eastern Algeria and near
a number of producing oil and gas
fields. The total area of the perimeter
is 2,907km 2 . A number of undeveloped
discoveries have been previously
identified on the perimeter.
The Msari Akabli Perimeter (Dragon Oil
30% paying interest, Enel 70% paying
interest and operator) is in the Ahnet
Basin in South-western Algeria. The
total area of the perimeter is 8,096km 2 .
A number of undeveloped discoveries
have been previously identified on
the perimeter.
EUROPE
ALGIERS
TUNISIA
ALGERIA
LIBYA
AFRICA
Tunisia
Dragon Oil signed a farm-in agreement
with a wholly owned subsidiary of
Cooper Energy Limited in October 2011.
The Bargou Joint Venture comprises
Dragon Oil (55%), Cooper Energy (30%,
operator) and Jacka Resources (15%).
The Bargou Exploration Permit is
located in the Gulf of Hammamet in the
Mediterranean Sea. The Permit covers
an area of 4,616km 2 with predominantly
offshore exploration prospects and
leads in water depths of approximately
50 to 100 meters. Following temporary
suspension of an exploration well,
the joint venture partners obtained a
one-year extension taking the permit
to August 2016 with a commitment
to acquire 500km 2 3D seismic data.
 RUSSIA

KAZAKHSTAN
CENTRAL
ASIA

BLACK SEA UZBEKISTAN

CASPIAN
GEORGIA SEA

ARMENIA AZERBAIJAN
TURKMENISTAN
TURKEY ASHGABAT

SYRIA MAZAR-I-SHARIF
MEDITERRANEAN
AFGHANISTAN
SEA IRAN
IRAQ
CAIRO

PAKISTAN

EGYPT
SAUDI DUBAI
ARABIA
RED
SEA
UAE OMAN
ARABIAN SEA

MIDDLE EAST
YEMEN

Egypt Afghanistan PRODUCTION SITE

Following the initial acceptance in 2013
of Dragon Oil’s offer for East Zeit Bay
by Ganoub El Wadi Holding Petroleum
Company (Ganope), one of the main
entities of the Petroleum Ministry
responsible for all exploration and
production activities in the southern
part of Egypt, the contract was signed
in May 2014.
East Zeit Bay (in which Dragon Oil has
a 100% interest) is located offshore in
the prolific southern Gulf of Suez region.
The block covers an area of 93km 2 and
lies in shallow waters ranging in depth
from 10 to 40 meters. A number of
producing oil fields are adjacent to or
near the block, namely East Zeit, Hilal,
Ashrafi, SW Ashrafi and Zeit Bay fields.
In 2012, a consortium of companies,
including Dragon Oil, participated in the
Afghan-Tajik Phase 1 Oil & Gas Tender.
In 2013, the Ministry of Mines and
Petroleum of Afghanistan signed the EXPLORATION SITES
exploration and production sharing
contracts for two blocks, Sanduqli and
Mazar-i-Sharif, with the consortium.
The participating interest of Dragon Oil,
Turkiye Petrolleri A.O. (TPAO) and the
Ghazanfar Group in the two blocks is
40%, 40% and 20%, respectively.
Dragon Oil is the operator of the Sanduqli
block, while the Mazar-i-Sharif block is
operated by TPAO. The Sanduqli block
spans 2,583km 2 , while the Mazar-i-
Sharif block has an area of 2,715km 2 .

Dragon Oil Company Profile 2016 23

 Sustainability
Dragon Oil is a highly responsible company
that understands the value of corporate
citizenship and knows that business has
an important social role to play above and
beyond the generation of wealth.

24 Dragon Oil Company Profile 2016

Dragon Oil Company Profile 2016 25
Sustainability
The Company’s mission is to safely explore and develop
oil and gas resources by leveraging technology and
a talented workforce. Dragon Oil is a dependable,
ethical partner with strong environmental awareness.

Overview
Dragon Oil’s business is the exploration
and development of oil and gas resources.
Safety &
In order to do this sustainably, we need Environment
appropriate technology and a talented
workforce – both of which we have.
Teamwork People
We want to be able to demonstrate to
all of our stakeholders that Dragon Oil
is a dependable, ethical partner,
capable of efficient operations, with
strong environmental awareness and
a commitment to the communities
in which we work.
Integrity &
Excellence Transparency
Therefore, we do our utmost to provide
a balance of both short- and long-term
economic, ecological and social inputs
to benefit local populations, host
countries, employees and shareholders.

Our primary production activity is in Social Stakeholder

Turkmenistan. We are there for the
Responsibility Value
long term and make a significant
contribution to the social and economic
development of the country as a result
of the direct and indirect employment
opportunities we have created.

We now have initial production in Iraq

and have commenced exploration
activities in Afghanistan, Algeria, Egypt
and Tunisia, which are expected to ramp
up over the next two to three years.
We have every intention of replicating
the standards of performance and
responsible behavior that we have
already demonstrated in Turkmenistan.
Corporate values
We have seven corporate values:
• Safety and the environment
• People
• Integrity and transparency
• Stakeholder value
• Social responsibility
• Excellence
• Teamwork
We believe that by introducing simple
and easily understandable values, we
will win employees’ and stakeholders’
support for what we do and how we do
it and define for everyone concerned
how we seek to achieve our goals.
For example, the safety of our workforce
and the communities in which we operate
are considered to be of paramount
importance. The stakeholder value we
generate must be sustainable. Integrity
and transparency, as well as high
standards of governance, are part of
our corporate culture. We adhere to
an internal Code of Conduct and ask
our contractors to do likewise.
Through internal audits and the
involvement of third-party consultants
the Group regularly reviews its policies
and procedures to ensure their
adequacy and robustness.
Accountability for key areas of
our business and sustainability is
divided amongst the senior members
of the company’s management, who
in turn report to the CEO, who holds
overall responsibility.

26 Dragon Oil Company Profile 2016


People
Our People are our main asset, and our
Human Resources (HR) Strategy is not
only focused on our current operations
but also designed to accommodate the
future expansion of our business by
recruiting and retaining the best talent
while training and developing our
existing employees. Development
of our people and the success of the
company go hand-in-hand. This is
one of the key elements of Dragon Oil’s
approach to sustainability.
Our objective is always to strengthen
our levels of expertise and our cultural
diversity. Dragon Oil is already a
collection of more than 40 nationalities
and we welcome the rich variety of
cultures and perspectives that this brings.
Our guiding principle of People First
continues to drive our focus on training,
empowering and putting our trust in
our workforce. In particular, we want
to enhance career development
opportunities for our national
employees in Turkmenistan and the UAE.
RETENTION RATE
Our HR strategy
We have a clearly defined HR strategy
to enable the ongoing expansion of
the group and our growth into a multi-
98%
Retention rate maintained in top-decile
asset company. scores as a testament to our human
resources strategy
The HR strategy focuses on a number
of areas, which include:
• fine-tuning our policies and initiating
new ones, to cope with emerging
challenges and market trends;
• hiring and retaining the best possible
pool of qualified candidates;
• providing platforms for innovative ideas
and schemes for the overall betterment
of employees and the business;
• developing and empowering our
workforce with a particular focus on
Turkmen national employees, aiming
to make them an independent and
skilled workforce;
• promoting and supporting further
We have appropriate
education for our most talented
people; and technology and a talented
• seeking ways to extend our workforce to explore and
educational reach to local
communities through scholarships. develop oil and gas resources
in a sustainable way.
Dragon Oil Company Profile 2016 27
Sustainability
Continued

Our HR department is fully compliant We have continued to focus on the Internship

with the ISO 9001:2008 quality
management standard, and our HR
strategy incorporates the ISO 18001
framework for providing a safe and
healthy working environment.
Training
We rely on skilled staff and invest in
training programs to promote their
professional development. For many
years Dragon Oil has had a policy
of creating jobs for people in
Turkmenistan, and today 93% of our
employees in the country are local.
Programs for the training of local staff,
which we have developed, are being
delivered at the Group’s Center of
Excellence in Hazar. This has enabled
hundreds of Turkmen employees to
acquire new skills.
In 2015, we invested US$1.8 million
in providing such skill-development
programs. Our Training and Development
department conducted approximately
140 training courses, where over 5,000
local employees were trained – with
many attending more than one course.
The training courses covered HSE,
focused technical training, specialized
development and soft skills. And while
the majority of these courses were
conducted within Turkmenistan, some
of the training was delivered outside
of the country.
HSE training continues to be designed
to further improve and strengthen a
safety culture among our employees
and develop their competences.
development of a group of over 50
Turkmen employees, first identified
in 2014 as being of high potential.
The long-term objective is that they
will eventually replace expatriates.
In 2015, we launched a thorough
Competency Framework that defined
the skills and knowledge required for
these high-potential employees.
In the course of the project we tested
their current levels of competence,
interviewed them and their line
managers and, based on the findings,
tailored plans will be offered that
ensure that each individual has clear
milestones and defined training
objectives that will close competency
gaps and ensure they are 100%
competent in their prospective roles.
Work in 2015 also included the
creation of Individual Development
Plans designed for each identified
high-potential employee, which
provide an opportunity to:
• work on a specific assignment or
a project within their department
or in other departments;
• have on-the-job training in our head
office in Dubai or on-site; and
• be given access to external training.
In recent years, this program has
successfully led to an increasing
number of our national employees
reaching management positions
as superintendents and supervisors
in Turkmenistan.
The Company is committed to hiring
high-potential junior and senior
university students or graduates
and providing them with training
assignments that will enhance their
ability to immediately add value to the
organization should they be offered
a full-time job. Specifically in 2015,
we awarded seven internships at
Dragon Oil’s headquarters in Dubai.
The objectives of the program are to:
• create a pipeline of potential employees
by identifying high-achieving students
in their academic careers;
• help the communities where Dragon
Oil operates and give opportunities
to students to gain experience;
• make use of challenging work
assignments to help develop students
while bringing value to the Company;
• reduce the training periods required for
new graduates in full-time roles; and
• provide the opportunity to evaluate
a student’s on-the-job performance
before offering them regular
employment.
Scholarship
Developing the citizens of the countries
where we operate into world-class
professionals reflects one of our core
Corporate Values: People. In 2015,
in Dubai, we enrolled six engineering
students under Dragon Oil’s scholarship
sponsorship scheme, while in
Turkmenistan we enrolled 10 students
to study oil and gas engineering and the
automation of technological processes.

As we also believe in diverse training,

the HR department offers not only the
classical classroom training but has
introduced on-the-job training via
dedicated trainers and is in the
process of introducing e-learning.
High-potential Turkmen employees
The development – and empowerment
– of our Turkmen employees is a key
strand in our strategy to ensure we are a
sustainable business, with the qualified
resources we need to enable our growth.
Case study
UAE scholarship program
In 2015, we attracted six young
students to our Scholarship Program
that is designed specifically for the
UAE nationals. They were selected
based on high school grades, academic
interests, and a panel interview.
The successful students then
enrolled in a range of engineering
specializations, such as chemical,
mechanical, electronic and civil
engineering, at the American
University of Sharjah. This program
will continue in future years.

28 Dragon Oil Company Profile 2016

We rely on skilled staff and
invest in training programs
to promote their professional
development and we offer
internships and scholarships
to university students.
Education assistance
In 2015, five employees benefited from our
Educational Assistance Program, which
aims to help Turkmen and UAE nationals
to continue their studies abroad. This
year it included study at universities in
Russia, Ukraine, the UK, Switzerland and
the UAE in subjects such as production,
project management, safety, logistics
and marine studies. Under this program
we provide the tuition fees for specific
educational studies, which helps motivate
the employees towards self-development,
career planning and promotion to
higher responsibilities.

Competencies
We engaged the International Human
Resources Development Corporation
(IHRDC), which specializes in training
and competency development for
the oil and gas industry, to introduce
a global standardized competency
management system, focused on our
employees’ development and to help
in our succession planning.

Our HR department has completed a

number of phases of the project since
3Q 2015, including software deployment
and training; job description reviews
for head office and expat employees in
Turkmenistan; job competency modeling
based on up to 15 technical competences
per position aligned to Dragon Oil’s
business strategy.

Work-life balance
There’s more to life than work, and
Dragon Oil is keen to ensure that our
employees enjoy a good work-life balance.

And as part of this, we organized a

family fun day in Dubai in March 2015
that was attended by almost all Dubai-
based employees who also brought
along their families. As well as offering
children a good time on bull rides,
climbing walls and soft play, their
parents could take part in a day of
fun-filled team building through events
such as Tug of War and racing a boat
that they had just built.
Sustainability
Continued
Code of Conduct
Dragon Oil has an increasingly multi-
cultural workforce across a number
of countries. We have an established
dedicated Compliance function
to oversee ethics and regulatory
compliance-related matters. And we
have had a Code of Conduct in place
for many years; it is shared with our
employees and contractors. It has
been updated and will be published.
What is a clear and easy decision for
one team member may be ambiguous
and complicated to another. Therefore,
rather than describing every possible
situation and defining expected
behavior, we have sought to harmonize
our overall corporate culture by
establishing a clear and consistent
set of Principles, embodied in the
Code of Conduct.
Each Principle is based upon one
or more of our Corporate Values
(see page 26), and it is from these
Principles that we derive our corporate
policies and procedures.
However, the Code does provide
specific guidance on issues such
as whistleblowing – where each and
every team member is expected and
empowered to raise any questions or
concerns without fear of retaliation and
where individuals who demonstrate
courage and integrity in stepping forward
to raise issues are guaranteed anonymity.
The Code also expects team members
to routinely engage with the Compliance
function over changes – which can be
frequent – to complex international trade
and customs regulations, economic
sanctions and embargoes.
All of our business partners are
expected to have the same approach
to business dealings as we do, and
we provide them with further guidance
about our expectations in a separate
Business Partners Code of Conduct.
30 Dragon Oil Company Profile 2016
Health, safety and
environment
Safety should be the number one priority
of any business: in particular the safety
of employees and of the environment.
Oil and gas companies often operate in
difficult locations, with complex systems,
heavy equipment, and inherently
dangerous products. Dragon Oil is no
different: which is why safety and the
environment come first on our list of
corporate values.
But we also believe that sound HSE
performance is vital to ensuring a
sustainable business. It is an integral
part of our business decision-
making processes.
Furthermore, we have performance
indicators that work on the basis
of ‘things that get measured get
improved’. Over the past few years,
we have made great strides in
systematically driving down our
Lost Time Incident Frequency rate.
We are committed to attaining the
highest HSE standards and have
a Steering Committee to ensure:
• the compliance of all parts of our
business with our corporate HSE
policies, procedures and standards;
• that the Group’s HSE practices are in
line with industry best practice and
the policies of the International
Association of Oil & Gas Producers;
and
• compliance with our ISO certification
requirements and the implementation
of third-party audit recommendations.
As a business, we have been accredited
to ISO 9001, ISO 14001 and OHSAS
18001 since 2012.
Safety
We continue to operate safely, with no
major accidents or serious environmental
incidents. Our HSE work aims to
highlight risks and ensure safety of our
operations. Construction nevertheless
remains a high-risk activity and,
unfortunately, in 2015 there was a
fatality at a construction site managed
by one of our contractors. We continue
to work with our contractors to ensure
compliance with higher safety
standards and practices.
Our Group Health, Safety and
Environment Management System
provides a tool for maintaining and
continuously improving HSE performance,
and meets ISO requirements as well as
the legal requirements of Turkmenistan.
We obtained re-certification to both
ISO14001 and OHSAS 18001 in 2015
with no significant non-conformances
identified during the audit process.
In line with our policies regarding the
development of our local workforce, key
HSE positions in our Cheleken Contract
Area are currently occupied by young
and highly motivated professionals
from Turkmenistan.
During 2015, we employed an external
contractor to provide Emergency
Response Training at all locations.
We then ran two follow-on exercises
to test competence and understanding
following the training.
Our Center of Excellence in Hazar runs
regular training courses using internal
specialists, as well as training with
instructors from external higher
education institutions.
Dragon Oil runs a number of incentive
schemes encouraging employees and
sub-contractors to adhere to safety
rules in our operations. These positively
contributed to additional reporting of
near-miss incidents during 2015.
In 2015, we also carried out 13 High
Visibility tours at onshore and offshore
facilities on topics ranging from lifting,
emergency procedures, permit-to-work
and risk assessment, to highlighting
unsafe acts or conditions, recording
findings and taking remedial action.
Monthly walk-through audits are carried
out with each contractor working on our
project sites, to assess their performance
in meeting our HSE standards.
TRAINING Environment
In 2015, as well as in 2014, our

US$1.8mn
US$1.8mn spent on training
Hazar operations celebrated the UN’s
Earth Day by cleaning the Dragon Oil
(Turkmenistan) Ltd. camp area in Hazar.
Youngsters taking part in the Dragon Oil
Dragon Oil employees Turkmenistan Sports Cup helped clean
the town’s beach and, together with
more than 100 of our employees,
Our Center of Excellence in collected over 200kg of recyclable
Hazar runs regular training litter at each location.
courses by internal and
This was processed at the state-of-
external specialists. the‑art waste disposal facility we
built in 2013.
We require project contractors to
maintain daily site construction An agreement has been reached with
inspection checklists, which will help Balkanabat Nature Protection Society
to minimize and isolate negative that will involve the planting of
factors and improve site conditions. approximately 1,500 plants (trees,
In addition we: flowers and grasses) in 2016.
• encouraged project contractors to
promote Anomaly Observation Report The Earth Day campaign brought together
schemes to develop their people’s not only representatives of different
awareness and increase involvement Dragon Oil departments, but also many
in the safety management system; of the company’s contractors.
• held weekly HSE team meetings and
monthly HSE Management meetings
with contractors discussing lessons
learned from incidents; Training across
• developed training presentations for
confined space entry, lifting, incident/
all of the Group
near-miss reporting awareness, and Employees who attended, including
incident investigation awareness for those who attended on a number of
supervisors; and occasions or both internal and external
• carried out 62 emergency- events (2015 data).
preparedness drills and exercises English7%
at our facilities in Turkmenistan.
Non-Technical 14%
Health HSE 62%
For our local employees in Technical17%
Turkmenistan, we make a voluntary
top-up contribution into the state
health scheme equivalent to 2% of
salary. This covers basic healthcare
and gives benefits on further treatments
and medication. We also provide on-site
medical facilities, with a doctor and
nurses on duty to attend to routine and
emergency medical cases. This covers
our employees, as well as citizens of
Hazar and is offered in addition to the
medical care provided by the state.

We have also signed a contract

between Dragon Oil (Turkmenistan) Ltd.
and the Emergency Ambulance Centers
in Ashgabad and Balkanabat to assist
in emergency situations.

Dragon Oil Company Profile 2016 31

Sustainability
Continued
Corporate Social
Responsibility work
in Turkmenistan
In Turkmenistan we believe we have
a responsibility to give back to the
community that hosts us by actively
seeking to improve their health, wealth
and happiness – in particular in the city
of Hazar, where our operations are based.
Health
The most important investment that
Dragon Oil has made in the healthcare
infrastructure of Turkmenistan has
been the building, between 2011 and its
opening in 2013, of a US$5mn polyclinic
in Hazar. This provides out-patient services
to our employees, their families and the
local community and plays a significant
role in the city’s routine healthcare.
The Hazar Polyclinic can treat up to
100 patients a day. Specialist doctors’
rooms include gastroenterology and
ear-nose-and-throat facilities, with
consulting services for ophthalmology,
cardiology and other specialties.
The clinic also offers long-term benefits
to the community through a focus on
health awareness, disease prevention
and health risk management.
But our investment in healthcare
in Turkmenistan also includes long-
standing support of the municipal
hospital in Hazar.
During 2015 we refurbished the hospital’s
X-ray unit, while also renovating the
Dental Department. This project included
both the main area where all dental
procedures are carried out and the
waiting room for patients. New medical
equipment was procured for the hospital’s
pre-natal and natal departments,
including specialized equipment for
newborns, and other important medical
equipment for the hospital such as
therapeutic furniture for disabled patients.
But in addition to equipment, we are
committed to improving the infrastructure
of the hospital – both physical and
clinical. We completed a project to
upgrade the hospital’s heating system,
which has been completely replaced,
and are in discussion with the relevant
authorities to organize training for the
hospital’s doctors.
Beyond Hazar, we sponsored a supply
of medical equipment for the new
Avaza Hospital and provided prosthetic
devices to socially disadvantaged
32 Dragon Oil Company Profile 2016
patients of the Turkmenistan State
Traumatology Center in Ashgabat.
Education
Each year we invest in the overhaul
of classrooms and facilities at schools
in Hazar.
This year’s work was concentrated on
the refurbishment of two kindergartens,
which will help to alleviate the shortage
of pre-school spaces in the city.
At both Kindergarten #3 and
Kindergarten #4 we have funded
repair work to buildings that had been
closed as being unsafe. This work will
continue in 2016, when we will also
be landscaping the sites, adding
playgrounds and providing new
furniture and equipment. Kindergarten
#3 has since been recognized as the
Best Kindergarten in the Balkan Region.
Further, we have sponsored several
projects at School #3. These include
replacing an old roof in order to
protect future and already completed
renovation work from leakages. This
project is nearing its end. We have
procured brand-new equipment to
equip recently renovated kitchens at
the school, replacing old stoves and
ovens and adding new items such as
freezers and dough makers. The school’s
obsolete electrical equipment has also
been replaced, and the school now has
a stable supply of electricity for all
classrooms and common areas.
We are continuing to recognize and
reward talented young people in
Turkmenistan and once again sponsored
an award ceremony for the winners of
the High School Olympiads. More than
a hundred high school students were
presented with gifts from Dragon Oil for
their outstanding academic performance
in subjects that included all of the
sciences, but also English, Turkmen,
Russian, history and geography.
Furthermore, within the framework of
our Youth Scholarship Program, we
sponsor 10 students from Hazar to
study engineering disciplines at Tomsk
Polytechnic University in Russia.
Our support then continues for more
specialized education, which this year
included working with the International
Oil and Gas University of Turkmenistan
and providing internships for
students at Dragon Oil field facilities,
as well as funding training on cost
management for three State
Agency employees provided
by Petroskills in London.
And for the first time, Dragon Oil
launched a scholarship program for
high school graduates from Hazar.
Ten candidates (five boys and five girls)
were selected based on their exam
results in mathematics and chemistry,
to study at Tomsk University in Russia
from September 2015.
Sports
Sponsorship from Dragon Oil has a
significant impact on the sporting life
– and well-being – of young people in
Hazar and throughout Turkmenistan.
For example, in 2015, we sponsored a
trip by the Hazar Girls Volleyball team
to the International Youth Volleyball
Tournament in Primorsko, Bulgaria,
where they were bronze medalists.
We also enabled the national team to
take part in the European Paralympic
Powerlifting Championship in Hungary.
We are deeply committed to the
development of sport for disabled
people and not only support the National
Paralympic Committee and Special
Olympics of Turkmenistan but also
regional organizations and local events.
In 2015, we held the 6th Dragon Oil Cup.
Junior teams from all regions of
Turkmenistan competed at volleyball,
basketball, football, and boxing –
together with other competitions
in table tennis and chess.
We supply kit and prizes for a huge
variety of sports – from ice hockey
and judo in Ashgabat to the training of
jockeys at the Balkan State Equestrian
Center. Our support provided
sportswear for the Turkmenistan
national Belt Wrestling team who took
part in the 2015 World Championship in
Poland where the team won four gold,
one silver and two bronze medals.
We also provided sponsorship to
the TV channel Turkmen Sport for
broadcasting international soccer
and basketball championships.
In Turkmenistan
we believe we have a
responsibility to give back to
the community that hosts us.
Community support
Dragon Oil takes an active part in the
development and modernization of
Turkmenistan’s infrastructure.
We began operating in the Cheleken
Contract Area in 2000, having signed
the Production Sharing Agreement in
November 1999, and have since
invested significant funds directly into
the development of the local oil and
gas industry.
But we have also been investing directly
into projects that immensely benefit our
host communities.
A vivid example of such an investment
is the seawater desalination plant in
Hazar, put into operation at the end
of 2009, that is transforming water
from the Caspian Sea for wider use. Our
plant provides potable water. It is also
an important source of quality water
that safeguards town health and
medical and water-related facilities
from disruption in water supplies, for
example, during prolonged drought
seasons or earthquakes.
This is a clear
example of our long-term commitment
to the local community.
Other water-based projects in which
Dragon Oil was actively involved in
2015, concerned improvements to the
supply and treatment of water in Hazar.
For example, we acquired and fitted
a new diesel generator to the city’s
sewage treatment plant. This provides
a reliable source of power and
ensures that the plant can operate
with maximum efficiency.
We are also planning to install a diesel
pump for Hazar’s water reservoir
station. The project will cover design,
engineering, procurement, installation
and commissioning of the pump, which
will safeguard the working of the plant,
which supplies water to the whole town.
Concrete water storage tanks have also
been installed underground at three of
the city’s educational and childcare
facilities that will guarantee them a reliable
and uninterrupted supply of water.
Further projects to improve the daily
lives of local people include the
construction of two new playgrounds
in an area of Hazar.
We are also part-way through a project
to completely renovate the Hazar
bakery, which supplies fresh bread
to the town but which has not been
refurbished since the 1990s. Phase 1
of the project has involved the
procurement of two bulk containers
for flour storage.
However, one of the most important
aspects of Dragon Oil’s investment
in the Cheleken Contract Area is
the opportunity it creates for local
businesses and local jobs. We have
partnerships with more than 20 local
companies for contractual work and
materials supply – with a significant
value of contracts awarded to them
over the past few years. These
contractor companies employ more
than 3,000 local workers.
Culture
During 2015 we continued to support
cultural events that enrich lives of the
local communities. We:
• sponsored concerts of classical music
for children by the Rovshen Nepesov
Orchestra in Ashgabat and Hazar;
• provided instruments to the Hazar
Musical School and Culture
Department; and
• promoted a concert by the popular
Ashgabat-based band Black Jack in
Hazar. This event not only gave the
local youth access to the latest
musical trends, but also helped to
build a cultural bridge between Hazar
and the capital.
Dragon Oil Company Profile 2016 33
Enterprise Risk Management
The Dragon Oil Enterprise Risk Management Framework
consists of three core elements: governance, process
and culture & compliance.

Framework
The Dragon Oil Enterprise Risk
Management (ERM) Framework
consists of three core elements:
governance, process and culture &
compliance. It comprises policies,
procedures and the Group’s
organizational structure with clear roles,
responsibilities and accountabilities
aimed at risk identification, risk
assessment, risk treatment and risk
monitoring and reporting. Application
and consistency of policies and
procedures aimed at managing
strategic, operational, financial and
compliance risks inherent in our
business are regularly reviewed
by respective operations and
support departments.

1 – 2 Governance
The Board is committed to risk
management by setting up a
clear structure and defining
roles and responsibilities. 1.
Strategy
& Appetite
3 – 6 Process
The ERM process provides a
consistent approach to risk 2.
management from identification, Policy, Roles &
mitigation to reporting. Responsibilities

7 – 9 Culture & 3.
Compliance Identification
Dragon Oil leadership drives & Assessment
a culture of risk management
by a top-down commitment
and seeks assurances that
responses to critical risks
are acceptable. 4.
Control &
Mitigation

5.
Monitoring,
Escalation &
Reporting

6.
Tools &
Technology

7. Performance 8. Training &

& Reward Awareness

9. Assurance

34 Dragon Oil Company Profile 2016

The Group seeks to improve awareness
and continuously strengthen its
capabilities throughout the organization
to ensure that appropriate and suitable
risk identification, assessment,
treatment and monitoring processes
as well as risk reporting processes
are in place to help deliver the Group’s
business objectives and targets.
In order to effectively manage the
Group’s ERM process with adequate
controls, the ERM reporting is
structured to allow for a consistent
and clear framework of managing
and periodically reporting risks
from departments level all the way
to the Board.

1 & 2. Risk Management Governance

and Tone at the top
• Clear structure that defines and demonstrates Board
and senior management involvement in and specific
accountability for risk management.

3. Risk Identification and Assessment 5. Risk Monitoring, Escalation and Reporting

• Robust processes in place to aggregate and prioritize risks
at an enterprise level.
• Scope of assessment considers probability and impact
of risks.
• Correlations and portfolio effects of risk exposures recognized.
4. Risk Control and Mitigation
• Risk control decisions are linked to risk appetite and target
risk levels are clear.
• Specific consideration has been made as to whether the
design and execution of key treatments are effective, and
in turn whether such treatments are sufficient overall.
• Risk monitoring and escalation processes are defined and
embedded within business processes.
• Early warning systems in place to red-flag emerging risks
and identify change in existing risks.
• Risk reports are formally defined to provide adequate and
timely intelligence to senior management and the business
for oversight of risks.
• Clear risk management policies and procedures for
managing all material risks.
• Availability of sufficient resources to support risk
management needs.
6. Infrastructure (Tools and Technology)
• Risk Management technology and IT systems that support
and enable the business to embed the risk management
processes and deliver risk relevant data.

7 & 8. Awareness and Communication 9. Assurance over Significant Risks

• Culture that supports risk management effectiveness • Assurance that mitigation and control responses to critical
and reporting. risks are appropriate and that the risks are considered to
• Top-down commitment to risk management with leadership be acceptable.
by example.
• Proactive risk management encouraged and rewarded.
• Awareness of organization’s risk management appetite and
practices and decision-making autonomy, with defined
escalation paths and triggers in place.

Dragon Oil Company Profile 2016 35

Enterprise Risk Management
Continued
Risk Management Process
Dragon Oil recognizes that management
of risk is an integral part of our business
and manages key risks within the ERM
framework. The Group is impacted by
a variety of risks, not all of which are
within its control. We run our business
ensuring the impact of such risks is
mitigated wherever possible.
Dragon Oil’s business is potentially
exposed to different risks, oil & gas
industry-specific risks as well as
business-specific risks. However, some
business risks can be accepted by the
Group provided that acceptance of
such risks creates value and that the
risks are properly managed. We recognize
that the effective management of
the business risks is crucial to our
continued growth and success.
The key objectives of the Group’s
ERM are:
• to ensure that the significant business
risks to which Dragon Oil is exposed
are systematically identified, assessed
and managed to acceptable levels
based on risk tolerance and appetite
levels as approved by the Board;
• to achieve an optimal risk-reward
balance; and
• to ensure that risk management is
embedded in the culture and all
decision-making processes.
Our approach to risk management
In order to effectively manage the
Group’s ERM process with adequate
controls, the ERM reporting is structured
to allow for a consistent and clear
framework of managing and periodically
reporting risks from departments level
all the way to the Board.
Board of Directors
The Board is ultimately responsible for
risk management within the Group in
accordance with corporate governance
requirements. The Board ensures that
risk management is embedded into all
processes and activities of the Group,
including business planning processes
and performance management that
act as principal parameters against
which the performance of the Group
is measured. These include annual
objectives and targets covering
36 Dragon Oil Company Profile 2016
exploration, development, production,
HSE, resources and capital allocation
and financial performance. The Board,
with the support of the Audit Committee
and Executive Committee (ExCom),
ensures that all corporate risks that
may significantly influence the Group’s
strategic goals and targets are
adequately identified, assessed,
mitigated and monitored.
Audit Committee
The Audit Committee provides an
oversight to identify, challenge and
manage significant corporate risks.
The mitigation plans for each risk are
identified and effectively implemented.
As part of the risk management process,
the Audit Committee sets out annual
audit work programs and monitors
progress and issues recommendations.
Chief Executive Officer and
Chief Operating Officer
The CEO is the Group Risk Owner
at the corporate level. The CEO with
the support of the ExCom members
challenges identified risks and their
profile, proposed mitigation plans
and ensures that agreed mitigation
plans are implemented and reported
periodically. The Chief Operating
Officer (COO), as the Risk Sponsor,
is responsible for ensuring that each
department completes an assessment
of their risks, for challenging the
robustness and completeness of the
risk profile, for performing in-depth
reviews of the key risks and monitoring
planned improvements.
Executive Committee
The Executive Committee sets policy
and oversees the management of
Group risks. The ExCom reviews
semi-annually and ensures that
significant risks at departmental
level and corporate risks are identified,
assessed, monitored and reported
and mitigating factors and planned
improvements are discussed and
implemented to manage these risks.
Risk Owners and Risk (ERM) Manager
Risk Owners at a department level
manage identified risks in appropriate
ways, including assessing the risks,
evaluating the mitigation factors,
monitoring the progress of planned
improvements and reporting quarterly.
In addition, it is the responsibility of risk
owners to promote safe, secure, compliant
and reliable operations as part of the
day-to-day risk management process.
The Risk Manager facilitates periodic
reporting up the management chain to
the Board. The Risk Manager and their
team receive reports from departments,
review and track progress of risk
management activities, compile the
Group’s risk register, ensuring compliance
to the approved risk management
policy and procedure. In addition, the
Risk Manager assists the Risk Owners
with creating risk awareness and
building capabilities in the Group through
continuous communication, consultations
and training programs.
Assurance
The internal audit department provides
independent assurance that the
Group’s control systems are adequate
and operating according to its intended
objectives to respond appropriately
to the risks that are significant to
Dragon Oil.
The Group has a Compliance function
that is responsible for nurturing a
culture of compliance within the
organization, including promoting the
key principles of the Code of Conduct
and the Dragon Oil Core Values; leading
the Group’s compliance activities
as they relate to business ethics
compliance, trade compliance, third
party compliance and corporate
social responsibility and developing,
implementing and maintaining the
Dragon Oil Compliance Program,
including related policies, procedures
and internal controls.
Key risks for the business
We recognize that managing risks
requires a continuous effort from the
organization. Our risk management
strategy is to embed risk management
into the decision-making processes.
Our Corporate Risk Register is compiled
across the Group through a top-down
and bottom-up review process. Those
risks identified as critical and potentially
affecting our employees, reputation,
operations, performance and assets
needed to deliver the Group’s strategic
goals and targets are identified and
recorded through this process. During
the year we review, identify and assess
the risks the Group faces.
The principal risks and uncertainties
faced by the Group are listed below:

Risk Description Mitigation

Prolonged or A recent decline in oil prices presents The Board intends to retain appropriate levels
challenges to the oil and gas industry. of cash resources along with optimizing
sharp decline Prolonged low oil price environment can short-term business plans.
in oil price impact the Group’s development plans,
profitability, cash flows, liquidity and ability
to finance planned capital expenditure
as a result of lower revenue and lead to
impairment of the Group’s oil and gas
properties and, consequently, the
recoverability of the Company’s
investment in its subsidiaries.

Reliance on the sole The Group’s revenues are dependent on The Board has adopted a clear strategy for
the continued performance of its single growth and regularly reviews investment
producing asset producing asset, the Cheleken Contract opportunities.
Area, offshore Turkmenistan.

Compliance with Dragon Oil must comply with various
international and local legislation,
international laws including those related to ethical business
and regulations conduct and international trade. Although
the Joint Comprehensive Plan of Action
(JCPOA) 2015 eased certain restrictions
against Iran, US primary sanctions remain
intact and Ukraine-related sanctions
are increasing.
Dragon Oil is implementing a robust and
comprehensive corporate Compliance Program
to identify, assess and mitigate compliance-
related risks. Amongst other things, the
Compliance Program will cover the primary
areas of ethical business conduct, international
trade, third-party due diligence and monitoring,
and corporate social responsibility.

Dragon Oil Company Profile 2016 37

Senior Management
We have a strong management team of experienced
and talented professionals from all over the world.
01 02
06 07
11 12
01. Hussain Al Ansari, Chief Operating Officer
Hussain has 27 years experience in the petroleum
industry having worked with ARCO International,
ENOC, Dolphin Energy and Mubadala Petroleum
Services Co. He has a Bachelor’s Degree in
Chemical Engineering from the University of
California at Santa Barbara, USA.
02. Emad Buhulaigah, General Manager
of Petroleum Development
Emad has over 30 years of experience in petroleum
engineering, having worked for Gulf Oil, Saudi Aramco,
Chevron and Shell. He has a Master’s Degree in
petroleum engineering from the University of
Southern California, USA.
03. Faisal Rabee Al Awadhi, General
Manager, Turkmenistan
Faisal has more than 32 years of experience in the
oil and gas industry. He holds an HND from Brighton
Polytechnic in Industrial Engineering, UK, a Bachelor
of Science Degree in Petroleum Engineering from
Tulsa University Oklahoma, USA, and a Master’s
Degree in Petroleum Engineering and Management
from the University of Southern California, USA.
04. Tarun Ohri, Director of Finance
Tarun has over 30 years experience in finance,
accounting and audit predominantly in oil and gas
upstream and downstream sectors in Qatar and the
UAE. He is an associate of the Institute of Chartered
Accountants of India with a CISA qualification.
05 Hussain Al Alaiwy, Director
of Human Resources
Hussain holds a Bachelor’s Degree in Mechanical
Engineering from the University of Alabama, USA.
When he joined in 2008, Hussain brought to Dragon
Oil more than 27 years of experience in operational,
engineering and project management from working
for Saudi Aramco.
38 Dragon Oil Company Profile 2016
03 04
08 09
13 14
06. Mark Sawyer, Business Development
and New Ventures Manager
Mark has over 30 years of broad international
experience in the energy sector, including
responsibility for E&P business development for
a large multinational energy company. Prior to
Dragon Oil, Mark was Vice President, Business
Development with Tatweer Investments and Chief
Business Development Officer for Dubai Energy.
07. Annisa Loadwick, Acting General Counsel
Annisa qualified as a solicitor of the Supreme Court
of Queensland, Australia in 2002. Prior to Dragon Oil,
Annisa was a partner in a law firm where she
provided advice to international oil and gas services
companies. She holds an LLB, a Bachelor of Arts
in Psychology from Griffith University and a Post
Graduate Diploma in Energy and the Environment
from Murdoch University, Australia.
08. Ahmad Assadi, Marketing Manager
Ahmad holds a Bachelor of Science Degree
in Mechanical Engineering and MBA in Finance.
He came to Dragon Oil with over 25 years of
commercial and logistics experience within the
oil and gas industry with Abu Dhabi Gas
Liquefaction Limited (ADGAS), Abu Dhabi.
09. Faisal Al Ansari, Corporate Planning
and Purchasing Departments Manager
Faisal has over 30 years of experience in reservoir
engineering and field development planning,
business performance, corporate planning, logistics
and marine operations. Faisal holds a Bachelor
of Science Degree with Double Major in Physics
and Mathematics from the University of Lewis and
Clark College, USA.
10. Ali Al Matar, Contracts Manager
Ali has 30 years experience in gas processing,
engineering, projects and contracts management.
Ali holds a Master’s Degree in Construction
Engineering Management and a Bachelor’s Degree
in Chemical Engineering from KFUPM, Saudi Arabia.
05
10
15
11. Nabil Al Ouf, Group Head of Internal Audit
Nabil has 27 years of experience in financial
management, regulatory and compliance auditing,
ERP system implementation and fraud investigation.
He finished his graduate studies in finance at
Portland State University, USA and pursued executive
studies at Harvard Business School. He is a qualified
CRBA, CRMA.
12. Mohamed Hashem, Reservoir
Development Manager
Mohamed joined Dragon Oil after 25 years with
Shell. Mohamed earned his BS Mechanical
Engineering degree from Ain-Shams University,
Cairo, Egypt; an MS Petroleum Engineering degree
from the University of Southern California, Los
Angeles, USA; and a DE degree in Petroleum
Engineering from Stanford University, USA.
13. Stefano Santoni, Exploration Manager
Stefano is a geologist with over 35 years of
international oil industry experience gained through
numerous assignments in Libya, Egypt, Argentina,
Brazil, the USA, UK and UAE, where he worked on
projects ranging from new ventures to development.
Stefano has a Master of Science degree in Geology
from University of Firenze, Italy.
14. Igor Morgunov, Acting Projects Manager
Igor has over 30 years experience in oil and critical
sour gas processing, pipeline operations, and
facility design and construction project management.
Igor holds a Bachelor of Applied Science Degree in
Chemical Engineering from the University of Toronto,
Canada, and is a member of APEGGA.
15. Mahmoud Vaziri, Acting
Engineering Manager
Mahmoud has over 30 years of experience in the
field of offshore structures, integrity management
and project engineering activities. Mahmoud holds
a BSc Degree in Civil and Municipality Engineering
and an MSc in Ocean Engineering from University
College of London, UK.
16 17
22 23
27 28
16. Maurizio Fico, Drilling Manager
Maurizio comes to Dragon Oil with over 38 years of
international experience in drilling and completion
operations. He holds an Aeronautical Engineering
degree from ITAER, Italy.
17. Oleksandr Chechotkin, Abandonment
and Decommissioning Projects Manager
Oleksandr is a Chartered Engineer with over
35 years experience in engineering and work
experience in the CIS and the Middle East for
oil-related industries. He has a Master’s Degree
and PhD in Hydro Machinery from Kharkov
Polytechnic University, Ukraine.
18. Jasim Mohammed, Information
Technology Manager
Jasim holds an Executive Master’s Degree in
Business Administration from Zayed University
and Higher Diploma in Information Systems from
Higher Colleges of Technology. He has more than
20 years of experience in leading and managing
IT departments as well as managing corporate
shared services departments.
19. Rashid Redjepov, Deputy General
Manager, Turkmenistan
Rashid trained as an economist and worked for over
20 years in various areas of the upstream oil and
gas industry of Turkmenistan, both in the public and
private sectors, before being appointed as Country
Manager at Dragon Oil in November 2008. He is
now Deputy General Manager for Turkmenistan.
20. Eldar Kazimov, Deputy General
Manager, Turkmenistan
Eldar graduated from the Polytechnic Institute of
Turkmenistan and the TISBI University of Russia with
an Honours Degree in Petroleum Engineering and
Management. He had eight years of experience in
field operations before being appointed as Country
Manager at Dragon Oil in November 2008 and is
now Deputy General Manager for Turkmenistan.
18 19
24 25
29 30
21. Farriz Mashudi, Company Secretary
and Senior Counsel (Contracts)
Farriz read Law at Oxford University and holds
a LLM in International Business Law from the
University of London. She qualified as a UK Barrister.
Her 18 years of oil and gas industry experience
was gained from in-house legal and corporate
roles with Shell, Petronas and Qatar Petroleum.
22. George Batrinca, Field Production
Operations Manager, Turkmenistan
George joined Dragon Oil in February 2014 as Field
Manager. George holds PhD in Petroleum Engineering
from University of Oil & Gas Ploiesti, Romania and
has almost 27 years of oil and gas experience.
23. Mohammed Al Suwail, Field Production
Operations Manager, Turkmenistan
Mohammed joined Dragon Oil in 2010 to
establish and lead the field operations engineering
department and develop operational procedures
after 25 years with Saudi Aramco. He holds
a Bachelor’s degree in Mechanical Engineering
from the University of Arizona, USA.
24. Kheder Mekha, Field Construction
and Services Manager, Turkmenistan
Kheder worked as the Head of the Technical
Services Department in the Alfourat Petroleum
Company in Syria from 1990 to 2003, before
he joined Dragon Oil as a Field Manager. Kheder
holds a Bachelor’s Degree as mechanical
engineer from Aleppo University, Syria.
25. Mousa Jaafar AlEid, Field Construction
and Services Manager, Turkmenistan
Mousa joined Dragon Oil in 2014 and is based
in Hazar, Turkmenistan. Mousa brings 27 years
of working experience with Saudi Aramco.
20 21
26
31
26. John Wood, Health, Safety and
Environment Manager, Turkmenistan
John is a Chartered Member of the Institute of
Occupational Health and Safety. He holds the National
Examination Board in Occupational Safety and Health
(NEBOSH) Diploma Level 6 in Occupational Health
and Safety. John has 20 years of experience of
working worldwide on onshore and offshore projects.
27. Ian Fletcher, Health, Safety and
Environment Manager, Turkmenistan
Ian has over 24 years experience in the Health, Safety
and Environmental fields within the oil and gas
industry with the most recent position being HSE
Manager for Dubai Supply Authority, a natural gas
production, storage and transportation company
responsible for all hydrocarbon supply and storage
within the Emirate of Dubai.
28. Ephraim Ebodaghe, Country
Manager, Afghanistan
Ephraim joined Dragon Oil in 2013 and is based in
Dubai and Mazar-i-Sharif. He holds a Bachelor’s Degree
in Physics and Surveying from University of Science
and Technology, Port Harcourt, Nigeria. He comes
with 25 years of experience with Schlumberger.
29. Hesham El Meligy, Country Manager, Egypt
Hesham has 30 years experience in the oil & gas
industry. Prior to joining Dragon Oil, he worked for
Statoil and Apache Corporation. Hesham holds a
Master’s Degree in the Geophysics and Geology
from Ain Sham University, Egypt.
30. Hubert Mainitz, Country Manager, Algeria
Hubert joined Dragon Oil in 2015 and is based in
Algeria. He has more than 30 years experience
in the oil & gas industry. He holds Diplom Ingenieur
(Dipl.Ing.) from the Technical University of
Clausthal, Germany.
31. Tamer Nassar, Compliance Officer
Tamer is a Compliance professional with over
15 years of experience in the energy sectors of the
Americas, Europe, Africa and Asia, and has overall
responsibility for the administration of the Compliance
Function throughout Dragon Oil’s areas of operation.
Dragon Oil Company Profile 2016 39
Corporate Governance
Adhering to high standards of corporate governance
and having a strong Board and management team
help us achieve our business objectives.
Dragon Oil places great significance
on high standards of corporate
governance as a means to emphasise
the Group’s good business conduct
and strong ethical culture. The Board
recognizes its role in providing effective
and clear leadership and direction on all
matters relating to the business of the
Group and is committed to maintaining
high standards of corporate governance.
This creates a robust culture of
business integrity and performance,
with a view to generating value for the
Group and the stakeholders.
The Board
The Board provides strategic leadership
and oversees the performance of
management on behalf of the shareholder
to deliver a strong, sustainable financial
performance and long-term value.
The Board is responsible for setting
the Group’s direction, considering its
business strategy, setting business
goals, appraising the Group’s
performance against those goals
and ensuring that the Group meets
relevant obligations. The Board is also
responsible for assessment of the
Group’s strengths and weaknesses and
determining the extent of the significant
risks it is willing to take in achieving its
strategic objectives.
Committees of the Board
The Board has three committees:
the Audit Committee, Remuneration
Committee and Nominations Committee.
Audit Committee
The Committee supports the Board
in carrying out its responsibilities in
relation to financial reporting and
reviews the effectiveness of the
Group’s internal financial control and
financial risk management systems.
The Committee also monitors and
reviews the effectiveness of the
Group’s internal audit function and on
behalf of the Board manages the
appointment and remuneration of the
external auditor as well as monitoring
their performance, independence and
objectivity. Moreover, the Audit
Committee is responsible for reviewing
and approving the Compliance
Program; it monitors the performance
of the Compliance Function. Both the
40 Dragon Oil Company Profile 2016
Internal Audit and Compliance functions
of the Group have direct reporting lines
to the Audit Committee.
Remuneration Committee
The Remuneration Committee is
responsible for determining and
agreeing with the Board, a framework
or a broad policy for the remuneration
of the Executive Director and other
senior members of the executive
management. The Remuneration
Committee also reviews and assesses
proposals for long-term incentive plans
and other Group-wide employee benefits.
Nominations Committee
The Nominations Committee considers
the composition of the Board and
makes recommendations on the
appointment of new Directors as well
as making recommendations to the
Board on succession planning at the
senior management level.
Management Working Committees
In order to assist and support the CEO
in the implementation of the Group’s
business strategy and plans, the CEO
has established a number of management
working committees. Working committees
play a vital role in supporting the CEO
in the effective management of
Dragon Oil. Notably the following
are the key ones among a number
of committees:
(1) Executive Committee:
(a) comprises the CEO, COO and
General Manager of Petroleum
Development along with
six other senior managers;
(b) is a primary advising body
enabling the CEO to make
informed decisions through
periodic discussion and
deliberations on critical
strategic, operational and
financial matters relating to
management of the Group.
(2) Major Tender Board:
(a) comprises the CEO, COO and
General Manager of Petroleum
Development along with five
other senior managers;
(b) is responsible for approving the
contract strategies and awards
of all major contracts (i.e. with a
value in excess of US$3 million),
as well as being accountable for
ensuring the effectiveness and
transparency of the Group’s
procurement processes.
Internal Control
The Directors are responsible for the
implementation and review of the Group’s
system of internal control appropriate
to the various business environments
in which it operates. The control
processes are complemented by
effective monitoring and reporting
mechanisms. The system has been
designed to enable the Group to identify,
evaluate and manage significant risks
faced by the Group and includes
the safeguarding of assets from
inappropriate use or loss or fraud,
the identification and management of
liabilities, the maintenance of proper
records to ensure quality internal and
external reporting and compliance
with the applicable laws and regulations
governing its conduct of business.
Glossary/Definitions/Abbreviations

boe ERP Platform

barrels of oil equivalent Enterprise Resource Planning Large structure used to house
employees and machinery needed
bn ERM to drill wells in a reservoir to extract
billion Enterprise Risk Management oil and gas for transportation to shore

bopd HR PSA
barrels of oil per day Human Resources Production Sharing Agreement is a
contractual arrangement for exploration,
development and production of
CEO HSE hydrocarbon resources in the Cheleken
Chief Executive Officer Health, Safety and Environment Contract Area, Turkmenistan

CIS IEA UAE

Commonwealth of Independent States International Energy Agency The United Arab Emirates

COO kg UK
Chief Operating Officer kilogram The United Kingdom of Great Britain
and Northern Ireland
CPF km
Central Processing Facility kilometer US
The United States of America
Dragon Oil/the Group mn
Dragon Oil Limited and its various million US$
subsidiary companies United States Dollars
OECD
EIA The Organisation for Economic Workover
U.S. Energy Information Administration Co-operation and Development Well intervention involving invasive
techniques, such as wireline, coiled
E&P OPEC tubing or snubbing
Exploration and Production The Organization of the Petroleum
Exporting Countries
ENOC
Emirates National Oil Company Limited
(ENOC) L.L.C.

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Registered office
Dragon Oil Limited
6th floor, South Bank House
Barrow Street
Dublin 4
Ireland
Tel: +353 1 614 5247
Fax: +353 1 614 5001
www.dragonoil.com
Group headquarters London office: Ashgabat office:
Dragon Oil St Andrew’s Building Ata Govshudov Street 9/1
ENOC House II 17 Old Park Lane Ashgabat
3rd Floor London Turkmenistan
Right Wing W1K 1QT Tel: +993 1293 5333
Sheikh Rashid Road United Kingdom Fax: +993 1293 6377
P.O. Box 34666 Tel: +44 20 7647 7800
Dubai, UAE Fax: +44 20 7629 5543
Tel: +971 4 305 3600 Company registration
Fax: +971 4 335 6954 number: 35228