Oil and gas exploration company Dragon saw profits drop by 20% for the first half of 2013 despite an 15% increase in production.
The Dubai-based company, which is focused on Turkmenistan, suffered a downturn after making slower than expected progress on infrastructure projects.
Despite seeing average gross production up to 73,600boed, up more than 9,000 on the same time the previous year, pre-tax profits were down to $329million.
“Financial results for the first half of this year reflect the impact of slower than expected progress on the awarding of infrastructure projects and a revised pricing structure under the current crude oil marketing agreement,” said Dragon chief executive Dr Abdul Jaleel Al Khalifa
Crude oil prices of $86 a barrel, under the current price structure, brought revenues down, while the Caspian Driller and Land Rig 3 were delayed, impacting on drilling activity.
But the company, which expects to begin production tests at the Hammamet West-3 well off Tunisia shortly, said it was also expecting to start drilling at its Dzhygalybeg platform by the end of the year.
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