BAYIL LIMANY OEDD ON THE WAY OF GAS PROGRAMME IMPLEMENTATION

 

At the 22 January session of the Cabinet of Ministers on the results of 2006 and objectives for 2007, President of Azerbaijan Ilham Aliyev assigned the State Oil Company to satisfy the country's demand for natural gas through increasing ‘blue fuel' production. With this purpose, SOCAR has drawn up a special action program that is being successfully implemented today. Putting new wells in operation is the matter of high importance in increasing gas production. From this point, it is a big responsibility for Bayil Limani Offshore Exploration Drilling Department which always displayed good results in drilling field.

In accordance with Azerbaijan's gas program up to 2010, it is planned to ramp up gas production at Guneshli field in 1.5 times to 3.5 bn cub m. With this aim, Bayil Limani OEDD is planning to drill new wells here. Since 1982, the Department has drilled nearly 200 wells at Guneshli field and none of them was shut down for technical reasons over these 24 years. At present the wells bored by the Department's drillers give up to 80% of offshore and 65% of total oil produced by State Oil Company.

 

Caspian Energy (CE): Mr. Mammadov, how would you estimate the drilling results of past year at Bayil Limani OEDD?

 

Farhad Mammadov, Chief of Bayil Limani Offshore Exploration Drilling Department (OEDDD) with SOCAR: With a headway plan of 24,000 m, Bayil Limani OEDD has drilled 25,810 m, 107.5% of the plan. By and large, the year 2006 was quite successful for our team as we worked at three major fields - Guneshli, Neft Dashlari and West Absheron. In general, in 2006 we launched drilling of 12 wells and finished with 11 wells. Among them, 5 wells were drilled on shallows of Guneshli from platform No. 8 (well #232), No. 13 (##427, 432), No. 14  (#417) and No. 19 (#73), 5 wells at West Absheron from mobile floating drilling rig (MFDR) Khazar-4  (##168, 172, 172, 174, 175), and 1 well (#2312) at Neft Dashlari from MFDR Khazar-6.

In this respect, we have fulfilled the plan. At forecasted speed of 415 meter/rig-month we drilled 487 meter/rig-month, 117.3% of the plan.

By the results of the past year, construction of 7 wells instead of 6 was completed at Guneshli field for 28 May OGPD. All the wells proved to be high flow rate and display a total daily flow rate of more than 1,000 ton of oil and nearly 1mln cub m of gas per day.

 

CE: What are the prospects and OEDD's role in gas program?

 

Farhad Mammadov: President of Azerbaijan Ilham Aliyev has given an assignment to SOCAR to implement the gas program. Our team plays a big role in this drilling program. We suggest the years 2007-2008 be for us the great responsibility in respect of solving all tasks set for the State Oil Company of Azerbaijan.

This year has begun quite well. In January 2007, we met all forecasted indicators. So, with 2,830 m of plan we drilled 2,890 m, 102.1% of the plan. With a headway plan of 404 meter/rig-month we drilled 431 meter/rig-month, which is 106.7% of the plan.

According to the plan, we commenced drilling one oil&gas production well at Guneshli. Alongside, as it was planned, we completed drilling one well at Guneshli and one at West Absheron. Furthermore, we should have completed one more well at Guneshli, and it was completed too. Design speed was 357 meter/rig-month, while actual 431 meter/rig-month, which is 120.7% of the plan.

Moreover, with the February headway plan of 2,380 m we are going to drill a total of 3,100 m. In February, we are going to commission one more production well (#428) at Guneshli field; we already completed it so far, we are now mounting the wellhead equipment and the well development is beginning in short.

 

CE: What about exploration drilling?

 

Farhad Mammadov: We are planning to commence exploration drilling at either Nakhchivan or Garabagh field in the second half of the year.

 

CE: Which drilling rig will be used for exploration drilling?

 

Farhad Mammadov: We plan using one of mobile floating drilling rigs, probably Heydar Aliyev MFDR.

 

CE: Are you planning to drill any wells this year for development of Umid or Babek fields?

 

Farhad Mammadov: The platform for these fields is already included in estimate documents at Gipromorneftegaz Institute so far. All possible variants of drilling operations, as well as the budget and schedule, are being examined. I think by the end of the year we will have commenced drilling operations from a mobile floating drilling rig at one of these fields.

 

CE: Would you possibly provide detail on gas program implementation in 2007-2008?

 

Farhad Mammadov: According to 2007 gas program, we have been assigned to drill new gas wells. At the moment we are about to complete installation at platform No. 15 (24 wells drilled) at Guneshli field, which has been operated for more than 8 years. There we plan to drill two wells in a new well site discovered along with our Scientific-Research Institute. Drilling operations at Guneshli will also be performed from platform No. 3 (24 wells drilled), where installation operations are about to be completed. Furthermore, according to the gas program, we should drill new wells from platforms No. 8, 11, 13, 14 and 19 at Guneshli field.

Alongside, we are designing gas wells together with AzeriDrilling JV to be drilled at two other fields, March 8 and Bulla. We have also agreed to drill two wells at Alat-Offshore field. We currently examine the possibility of drilling gas well at Sangachal-Offshore field as well.

Additional wells are going to be drilled at the same fields in 2008.

 

CE: What is the 2007 headway plan for Bayil Limani OEDD? How is it realized?

 

Farhad Mammadov: According to the forecast, we should drill 60,000 meters during 2007. SOCAR was assigned to implement the gas program and we must comply with it as most regions of Azerbaijan shall be receiving gas in 2007.

 

CE: Due to the drilling increase with regard to the gas program, do you suggest to upgrade the drilling stock?

 

Farhad Mammadov: We have drilling equipment for platforms and we are going to repair it. We currently have equipment that was received in 1985 for development of Azeri, Chirag and other fields. This equipment is the one we are currently using. Nevertheless, this equipment has been kept for quite a long time and requires certain maintenance repars. Using this equipment, we should start drilling new wells from old platforms.

However, there were additional quarters installed at platform No. 11 at Guneshli field, and AzeriDrilling shall provide the drilling equipment from abroad to be installed and operated together with our OEDD. From these additional quarters on platform No. 11, 6 new wells will be drilled down to Kalinskaya Formation.

In general, a major gas program will be implemented at Guneshli field this year. We were aware of a gas reservoir located within the interval of 2.200-2.700 meters. Gas reservoirs are mainly located at 8th horizon, where the gas wells will be drilled from platform No. 11.

The gas program will also be implemented from platform No. 13, where together with AzeriDrilling we should mount the second drilling derrick. One drilling derrick has been installed to date. A total of 20 new gas wells will be drilled, and one of them has been already completed. Before the end of current year, with two drilling derricks, we plan to complete 10 wells, taking into consideration that one has been already drilled.

 

CE: Are you planning to perform any drilling operations in other sectors of the Caspian Sea?

 

Farhad Mammadov: Rovnag Abdullayev, president of SOCAR, has issued us the authorization to operate our mobile floating drilling rigs Khazar-4, Khazar-5 and Khazar-6 in other sectors of the Caspian Sea. Russia, Kazakhstan, Turkmenistan and Iran are interested in collaboration with us so far. Specific offers have already been received from Russia and Kazakhstan, but we are facing some issues to handle. These issues concern maintenance of drilling rigs, finances and some upgrade of our equipment.

We have recently struck several contracts regarding the purchase of several 1,000 kW rated output diesel generators and spares parts to them. We have already received one generator from Russia in January and we keep working out this issue.

 

CE: Could you suggest the amount of investments required to make our MFDRs complying with international standards?

 

Farhad Mammadov: Such a target calls for a number of upgrades; it will approximately take $25-30mln of investments for each rig. In principle, we are considering upgrading them and later operating them at large fields of Russia and Kazakhstan. The talks with these countries are going on now.

 

CE: Is there any programs implemented in respect to welfare and work conditions of your employees?

 

Farhad Mammadov: This field is on our daily agenda; in particular, we provide meals to our employees, arrange recreation in summer and treatment in various sanatoriums. I think this issue is one of great importance for our team. SOCAR seeks every opportunity to solve social problems of its employees.

 

CE: How deep is the deepest well OEDD has ever drilled in the Caspian Sea?

 

Farhad Mammadov: Sometimes we would drill approximately 6,000 meters at Duvani-Offshore and some 5,700 meters at Bahar field. Taking mobile drilling rigs into consideration, there were some wells with depth of approximately 6,300 meters. Today, Bayil Limani OEDD can be considered one of pioneers in the Caspian Sea as all Departments to have directly participated in discovery of new fields have been brought together in Bayil Limani OEDD.

 

CE: What are the structural changes to have taken place in Bayil Limani? And how would you evaluate the way OEDD passed since the day of production commencement in Azerbaijan, as a whole?

 

Farhad Mammadov: Bayil Limani OEDD has been enlarged so far: according to SOCAR's management order, we took over Bulla OEDD as a drilling subdivision in effect from November 6, 2006.

This drilling department was falling behind with 6,000 m lack of drilled meters. Taking into consideration that most indicators have changed we were doing our best to put wells in operation.

The history of Bayil Limani Offshore Exploration Drilling Department (OEDD) with Production Association (PA) Azneft of the State Oil Company of Azerbaijan (SOCAR) begins early in XX century 1(905-1907) when mechanical methods of drillings were put in practice and first wells with depth over 20 m were drilled. Just then, first teams to drill wells at various oil fields have been established. Later on, the major landfill operations took place on the shore of the Caspian Sea, and there new wells were drilled. First wells of the kind were constructed in the Bay of Sevinj.

That time the Department was called Kurgan Department of Drilling Operations, later on Department of Downhole Turbine Motor Drilling. Further, drilling operations were launched offshore and the 1948 Order of the Minister of Oil Industry of the USSR resulted in first oil well drilling at Neft Dashlari field. In 1949, this well was put into operation with a high daily flow rate. Right away, the basis was laid for the offshore drilling in the Caspian Sea, and we became Kurgan Department of Offshore Drilling Operations uniting several turbine motor drilling units. At a later time, the Department has changed several names: in 1956 it was named the First Drilling Office, in 1976 renamed to Offshore Exploration Drilling Department of the Ilyich Bay, and in 1991 to Bayil Limani Offshore Exploration Drilling Department.

I should note that generally Bayil Limani OEDD has been performing drilling operations at all offshore fields of Azerbaijan since 1949.

In conclusion, I would like to hand my best wishes to the team of Caspian Energy Magazine and Caspian Integration Business Club for their positive estimation of Bayil Limani OEDD's activities.