ANSAD PETROL 10-TH ANNIVERSARY

ANSAD is a joint venture company established between SOCAR and Attila Dogan Petroleum of Turkey (ADP) in 1993. The concession is the first agreement that was allocated to foreign operator ship. In 1995, ADP partnered with a Land General of Malaysia.

The concession is located in the lower Kura basin. The fields under ANSAD Contract Area are: Babazanan, Khilli, Neftchala, Hashimkhanli, Shorsulu, Orta Muganli, Muganli, Sarkhanbeyli, Azadkend, Nesimikend. The concession is operating its own terminal in the Caspian Sea. ANSAD is currently operating 85 km of its own pipelines. Raw petroleum sale is realized through marine tankers.

"ANSAD Petrol" has done significant work in Neftchala and Khilli fields since it became operational. The information for all the operational and non-operational wells were gathered, analyzed by specialists, drawbacks and problems were identified and the measures were worked out for their solution. Thanks to these measures many of the equipment and wells idle for years have been repaired and are operational now. A project has been worked out for construction of a collector with 17 km length for restoration of the wells lying under water. The first phase of the project is complete, the water has been pumped out and the area dried. This has cleared the way to the wells and facilities located in that work site and enabled the start of reconstruction works here. All the works are conducted using the latest technological achievements. The material and equipment used are chosen in compliance with the standards of the American Petroleum Institute. Modern methods are implemented in oil production processes.

Under ANSAD, the producing wells have been converted to closed circuit system, from production to sales point. This system will provide that the oil produced had no contact with land or environment, i.e. allowed avoiding oil seepage and secure green environment and land. This system is already implemented in Khilli and part of Neftchala field. 23 metal tanks with total 36,000m3 storage of oil. Over 20.000m section of old oil pipeline has been repaired and new ones with up to 35 km length have been constructed. ANSAD has been successful to implement this conversion and the efforts are continuing as new and old wells are coming on stream.

New office building, operator rooms, a transport pool, warehouses and other facilities have been built and commissioned and made available for use by the employees. "ANSAD Petrol" JV has done a lot for consolidation of its social and technical base. Presently, the company owns more than 70 machines and mechanisms of various types. Transportation means have been provided to service these mechanisms at remote work sites. An asphalt producing plant has been for built for construction and pavement of roads in the region.

The company takes geological and technological measures to maintain and improve the production rate. A set of geophysical surveys has been performed in Babazanan structure and totally 22.5 million US dollars have been invested in all these works between 1994-1996.

Since 1998 it has been functioning using its internal financial resources. The measures taken have allowed stopping reduction of the level of production. Production level goes up from year to year. Currently, 155 wells are operational on average. The average daily output is 135 tons of petroleum per day. Production increase is 31.4% compared to 1994 when the company just became operational, 313.0 thousand tons of petroleum and 172.3 million m3 of gas have been produced till the present time since that time. 30.2% of this product has been profit oil.