Dragon Oil is in negotiations to purchase a 25 per cent stake in LEA, the 50 per cent partner in a joint venture with the Turkmen Party for the production and development of Block II in the Turkmenistan section of the Caspian Sea. Dragon, which already has a controlling stake in LEA, has said the arrangements for the proposed acquisition have not yet been concluded. "If concluded, they are expected to involve consideration of $28 million (£18.6 million) payable to Larmag Energy Partners," according to a company statement. A further announcement will be made as soon as possible, it added.