NEW GENERATION IN DRILLING OPERATIONS
This year Caspian Drilling Company Limited (CDC) – a joint venture established between State Oil Company of Azerbaijan Republic (SOCAR) and US Company GlobalSantaFe Corporation (GSF) – that have been operating in the Caspian region for 10 years is celebrating its anniversary — Company’s General Manager Shaik Bakirov told Caspian Energy. Over the 10 years’ period the Company has been recognized by major oil companies and international associations as providing the best and safest drilling services.
Ten years in the drilling market
Over 10 years’ drilling operations on 13 prospective fields in the Azeri sector of the Caspian Sea the Company has achieved tremendous success. CDC’s input in exploration operations is really impressive: two oil and gas fields discovered were recognized worldwide. Utilizing upgraded semi-submersible floating rigs - Dada Gorgud and Istiglal - the JV drilled 31 exploration wells and 36 pre-drilling exploitation wells in the Caspian. Thus, over a ten years’ period total number of wells drilled by the Company made up 67 with their average depth varying within 4500-5000 meters (about 320 thousand meters of penetration depth). Taking into account downtime, upgrade and maintenance periods these could be considered quite good indicators (over 10 years the rigs have been idle approximately for 2 years).
CDC actively participated in discovering Azeri-Chirag-Guneshli (ACG) and Shah Daniz fields as well as proving high potentiality of Absheron, Nakhchivan, Karabakh, Ashrafi, Dan Ulduzu, Inam, Kurdashi and other fields. However, from late 2004 till 2005 the Company had less successful period when Istiglal had experienced downtime having sustained heavy losses both in profitability and experienced personnel. The Company had to build up a new team for the rig committing its devotion to their professional training and investing further time and finances. A new drilling team is ready and in waiting for any drilling projects. In August 2005 the JV signed a long-term drilling contract with BP Exploration (Caspian Sea) Ltd. for utilization of both rigs. The contract covers operations on Phases 1 and 2 of full-scale development of ACG, predrilling works on various parts of ACG, predrilling works on Shah Daniz and drilling operations on one exploration well on Shah Daniz and Inam fields. Based on Contractual terms and conditions the drilling program is continuously modified to keep up with the latest requirements and orders of BP. BP is number one customer for CDC in Azerbaijan.
Drilling attack
The Company took progressive steps in drilling industry having "attacked" deepwater portions of the Caspian Sea (400-700 m) and deepwater exploitation and exploration wells (over 6500-7000 m) taking into account directional drilling and borehole deviation methods (up to 62 degrees). Cluster drilling from subsea template, drilling with double gradient, safe riser-free operations in top sections were undertaken. These innovations in drilling operations worldwide were successfully developed and introduced in the Caspian by utilizing Dada Gorgud and Istiglal Rigs. The operations are considered expensive though quickly reimbursable at earlier production stages subject to quality completion of the wells.
At present the Company is drilling the 31st deepwater well – SDX-4 exploitation well on the opposite side of Shah Daniz - major gas condensate field. Successful completion of the well could double up Azerbaijan’s gas resources.
Although the rigs were built in 1980 and 1990 they are still in good working condition. Over the passed period Dada Gorgud was upgraded 4 times and Istiglal only twice. Suffice it to say that their condition was accepted as highly satisfactory, i.e. close to top level, as a result of evaluation done by Independent International Marine Inspection Society at BP’s request. This level is achieved through regular maintenance and service conducted in compliance with rig maintenance system of GlobalSantaFe.
During May-June 2006 Dada Gorgud will undertake a full-scale upgrade of accommodation quarters as well as of sewage treatment unit and Christmas-tree handling system of the existing subsea BOP stock.
Globalization
"Nowadays the oil industry has been undergoing globalization and restructuring processes in all areas. In Azerbaijan this tendency affected all spheres: oil industry structure has changed completely and the changes were observed both within SOCAR and BP. SOCAR’s efforts are aimed at improving safety, quality and social areas. A new ministry was created to improve the level of local oil producing companies as well as SOCAR was totally restructured to show even more zeal. SOCAR made a decision to establish a trade house in London. This proves its intent to go beyond the frameworks of a local company thus integrating into European oil processes. My opinion is that SOCAR will soon become an analogue of major foreign oil companies. Today we should make fundamental changes in the definition of the administrative office. The level of importance of those offices providing onshore support to offshore operations should be increased. Onshore support should fully conform to established standards and aim at full support of all offshore and field operational processes. Operational experience should be shared with foreign companies to reinforce efficiency and bring benefits for both oil industry and people.
Globalization and restructuring processes could be observed within CDC as well. We have reviewed our prospective plans and renewed our approaches.
The following positive changes have taken place recently: personnel salary increase, high salary rates established for key offshore personnel, retention bonuses on 6 months’ intervals as well as medical and life insurance. Training and professional inductions contribute to nationalization processes on our rigs in Azerbaijan and employment of local specialists for GSF fleet worldwide. This is what we call integration of technical potential on world market in oil and gas industry" — Shaik Bakirov summed up.