STEP CHANGES IN DRILLING TECHNOLOGY

Caspian Drilling Company (CDC) JV was registered in 1996, started its activity in the Caspian shelf in 1997, and was immediately recognized by foreign oil companies and international associations as a company with high potential.

One step ahead

During functioning, the company effectively operated in two floating semisubmersible drilling rigs (FSDR) - Dede Gorgud and Istiglal. Both the rigs meet demands of international standards, fulfill prospecting works in almost all the contractual yards under the production sharing agreement (PSA). As a result of prospecting works CDC JV drilling rigs discovered two big oil and gas fields - Azeri-Chirag-Guneshli (deep-water part) and Shah Deniz.

For the time past, CDC JV finished construction of several prospecting wells in the Azeri-Chirag-Guneshli (deep-water part) and Shah Deniz contractual yards, at the Garabagh, Ashrafi, Dan Ulduzu, Nakhchivan, Apsheron, Inam, Kurdashi, Araz Deniz structures - in total 25 wells of more than 5,000 meters average depth. The deepest offshore well was drilled in the Caspian at 6,746 meters, which is also the deepest in the continental shelf of the world. Customers of these projects were AIOC, BP Shah Deniz, CIPCO, NAOC, Exxon, Chevron, Agip.

Dede Gorgud DR is permanently upgraded and after the fourth stage it started drilling from the template in the Azeri field's Central, Western and Eastern parts. The rapid pre-drilling method appeared effective and is of the "Best Class" quality.

Istiglal DR has been twice upgraded, its state meets the highest demands of international standards. The rig drills deep wells (ї6,500 m) with pre-drilling method from the template in the Shah Deniz field. Presently the third well is being drilled.

Azerbaijan dividends

Today one may say that profitable work organization allowed the CDC JV to become the only company in Azerbaijan in partnership with SOCAR, which in due time pays dividends to its founders. There is a serious mutual understanding between the CDC JV founders - State Oil Company of the Azerbaijan Republic (SOCAR) and Global Santa Fe (GSF) company, members of the Board of Directors and Management of the company promote this.

The company also takes active part in the Republic's life, helps to solve the problems of refugees, shahid (martyrs') families, the unemployed and daily social shortages. The company renders humanitarian aid to the needy, ill, helpless people and Children's Homes as a legal and natural person. The company is sponsor of some sports competitions and sportsmen of Azerbaijan.

In a word, the company's leadership in close relation with governmental organizations renders a practical assistance in introduction of governmental directives, observance of the laws and decrees of the President of Azerbaijan Republic.

In turn, CDC JV pays a great attention to local expert trainings, which is done in accordance with the special program. The program aims at replacing foreign experts by the local ones. Local workers are socially protected and occurrence of any problems in this field is instantly removed.

Taking into account the available information about presence of hydrocarbon stocks, potential market, major acting and perspective projects, offshore drilling, climatic and geological aspects and conditions the CDC JV permanently increases expert knowledge, participates in all the SPE/IADC conferences, applies and introduces new technologies, newest equipment and from time to time upgrades drilling rigs under the market demand so as to increase its capacity for work in deep waters, achieves rapid and quality deepening in prospecting and development well construction cycles under complicated conditions

In this aspect, CDC JV fully understands that new equipment and progressive technology must be applied in order to achieve success in the field of oil and gas wells drilling. Practical introduction of scientific-technical achievements, analyses of drilling work parameters once more opens ways for the company to use unrealized potentials.

Undoubtedly, progressive visions, scientific achievements, technological evolution will consequently advance discovery of new offshore fields, and rapid drilling will significantly cut its prime cost.

General director of the CDC JV Shaig Bakirov noted in interview to Caspian Energy, "All the above-mentioned aspects are successfully applied in practical life by our company's collective and achievements of our company raise self-reliance in us. At the same time, Direction of the Company, Board of Directors of the Company and business councils of the founders (SOCAR and GSF) are always working on improving the Company's technical, industrial and financial parameters".

CDC JV budget for 2004 stipulates detailed reflection of incomes, operational charges and planned profit, which guarantees successful increase of the company's activity in the Caspian shelf and possibility of remaining recognized drilling contractor rendering exemplary drilling service to its clients.

CDC JV experts successfully do and apply the following with a serious approach in order to achieve the above-mentioned parameters:

- abnormal high pressure and high temperature and their affect on drilling;

- pressure prediction and its regulation at deep well drilling;

- riser management and integrity guidelines;

- manage pressure drilling;

- mono bore technologies;

- drilling simultaneously with setting casing;

- high quality use of drilling fluids (on the oil, synthetic, polymeric basis)

- dual - gradient drilling;

- horizontal drilling control system;

- rotory stearing drilling system;

- topside (overburden) drilling and casing;

- use of top-drives;

- creation of incident free work places;

- creation of null environmental pollution;

- personnel training, refresher trainings, safe work control and increase of drilling rigs' efficiency coefficient;

- creation of Guidelines.