Caspian Energy (CE): Mr. Isayev, how would evaluate the activity of the company in the oil and gas market of Azerbaijan?
Ramin Isayev, General Director, SOCAR-AQS LLC: SOCAR-AQS was established in late 2007 as a joint venture by the State Oil Company of Azerbaijan (SOCAR) and Absheron Drilling Company (AQS) as partners. As a co-founder, SOCAR of the joint venture is bringing its more than 160 years’ experience of industrial drilling of oil and gas wells. The other co-founder, AQS, is contributing latest drilling technologies and brand-new management methods.
The joint venture was established, first of all, to perform in shortest time and minimum costs drilling, construction, completion and custody transfer to the Customer of high-quality oil and gas wells according to the top international standards on safety measures and environmental protection. The second aim was to develop organizational and individual opportunities so as to create a modern competitive drilling enterprise. In the process of drilling and construction of wells we strictly adhere to the policy of values and standards introduced in our company and also requirements of the Customer for the maximally safe, fast and high-quality commissioning of wells. Our company has turned into an industry-leading drilling company. Due to high-quality and accident-free services provided, the company managed to establish a good reputation among customers and today is a world-class competitive drilling company.
Our purpose is drilling and delivery of high-quality, highly productive and effective oil and gas wells ahead of schedule by focusing our operations mainly on quality, safety and operational performance. The main zone of operations performed by SOCAR-AQS LLC covers drilling of oil and gas wells in the Caspian Sea.
CE: Could you, please, provide information on the results of company’s operations during last year? What are the plans for the 2013 year?
Ramin Isayev: Just like during previous 2010 and 2011, in 2012 SOCAR-AQS executed its commitments on successful implementation of drilling operations in an effective way and without incidents. Instead of 17,500 meters of headway determined by the Customer for last year, the company drilled in total 19,547 meters, thereby, the plan was executed by 111.7%. Instead of planned 5 wells, the company drilled and handed over 6 wells to the Customer. Thereby, the company executed the annual plan by 120%.
Health, Safety, Environment and Security achievements underlie all the successes of our company gained in general and in 2012. During the operations the company did not do any harm and damage to human health, environment or equipment. Drilling waste was collected by 100% into tight containers and utilized in special places according to the legislation requirements. To prevent harm to the environment during drilling operations, the company reconstructed the drainage system, and purchased and commissioned environmentally-friendly generators. Besides, our employees passed in total 35,436 man-hours of trainings in the domestic and foreign training centers to improve their professional skills and knowledge.
Acquiring foreign experience and introduction of international standards is very important for turning into a modern company. SOCAR-AQS is making committed efforts in this direction. Company’s major achievement in the field of introduction of international standards was successful passing a repeated certification audit performed by the Swiss Certification Authority, SGS. The audit has covered all the sites of SOCAR-AQS. As a result, the company was accredited according to 3 international standards on ISO 9001 (Quality Management System), ISO 14001 (Environment Management System) and OHSAS 18001 (Occupational Health and Safety). Moreover, the company underwent a 2-stage audit of the processes introduced in the company according to the standards of the American Petroleum Institute (API). Company’s goal for 2013 in this area is to successfully pass the next phase of audit and obtain a certificate on the basis of the API standards.
SOCAR-AQS plans to stay committed to integrating into the international drilling industry and entering the international market in 2013 through development of the personnel potential, mastering new equipment and technologies and improvement of its business processes.
CE: What are the major drilling successes of the company?
Ramin Isayev: One of the major achievements is that SOCAR-AQŞ has completed drilling of Well 308 from Platform 13. This well is to date the fastest of all the Fasila wells ever drilled in Shallow Water Gunashli field. Target depth of the well, which was drilled to Fasila, was 3,000 m. Thus, commercial speed of this well turned out to be the record-breaking, 1842 m/month. Drilling time was 42 days, and drilling depth was 3,009 m. It should be noted that the previous well drilling record on Shallow Water Gunashli was also fixed by SOCAR-AQŞ. At that time, Well 209 was drilled from Platform 11, and achieved the target depth of 3,373 m within 43 days.
It is worth to mention that time for drilling of wells on Shallow Water Gunashli to Fasila Layer as determined by the Customer, is at least 90 days. By introducing new methods of management, standards and new approaches in operations, SOCAR-AQŞ has fulfilled the task much ahead of time. During implementation of its operations, our company attaches great importance not only to the drilling speed of the well, but also to the provision of safe operations at all stages, to the environmental protection and to quality of well construction.
At present, the company carries out completion works at Well 44 on Platform 11, and is also completing preparatory work for drilling Well 315 on Platform 13.
CE: Could you, please, tell about the current fleet of drilling rigs in the company?
Ramin Isayev: Currently, the company conducts well drilling and construction works from 3 drilling rigs located on 2 Deep-water Stationary Platforms (DWSP), for the main Customer – Azneft Production Unit of the State Oil Company of Azerbaijan Republic (SOCAR).
The capacity of the rigs is 2000 HP each. The drilling equipment comprises a derrick or mast, hoisting equipment, a rotary system, well control equipment, systems for storing, treating and pumping drilling fluids, and power generators. Our offshore rigs generally include drilling, production and living quarters, cranes, a helideck and storage areas. The specifications of the drilling equipment determine the drilling capabilities of the rig.
CE: Which latest technologies does the company introduce?
Ramin Isayev: In our drilling operations we are committed to using only brand-new, hi-tech equipment meeting international standards. Among such equipment used nowadays I would like to note the remote tracking system for online monitoring of drilling operations installed on the platform and at company’s office, controlled drilling equipment, different brand-new technologies presented by industry-leading contractors, high-performance pumps, automatic drilling equipment and drilling tools, drilling pipes, topdrive, etc.
CE: How do drilling operations of the company comply with environmental requirements?
Ramin Isayev: When planning measures in the field of environment protection we adhere to the policy of the President of Azerbaijan Ilham Aliyev on protection and improvement of environment. The policy of our company runs as following: “To prevent pollution of the environment by reducing any negative impacts on it in the process of company’s operations”. Generally speaking, in our approach to the environment protection we are guided, finally, by the philosophy of ‘zero discharge of waste’. To achieve this objective we have worked out a programme and a plan on waste management to reduce wastes initially by 10% as compared with the last year. Here included as main actions were: gradual replacement of the old energy equipment with modern one meeting ecological requirements; maximum waste-free and re-use of products and materials for the purpose of reducing the volume of wastes discharged into air; preference to using high-quality spare parts and materials instead of fast-wearing and turned into waste spare parts and low-quality materials. At the same time, the personnel who perform all these works should be always informed and be aware of the ecological aspects emerging during operations of the company, using equipment according to its destination, production and materials, reduction and segregation of waste.
As far as concrete actions for environmental protection this year are concerned, it should be noted signing a contract with the local contract company on removal and recycling of waste. Besides, the company organised special trainings for the personnel covering prevention of pollution, reduction of quantity of waste, and also waste segregation.
At the same time, SOCAR-AQS completed installation of bell nipples on all drilling rigs and construction of screw conveyors for work with drilling waste and drilling solution without doing any harm to the environment.
CE: Does the company plan to expand its operations beyond Azerbaijan?
Ramin Isayev: Our plans for the near future are to expand our operations throughout Azerbaijan and beyond it. Respectively, if we successfully achieve this purpose, we will face the necessity to expand a park of our drilling equipment in order to be able to fulfill requirements of potential Customers in a quality and fast.
Caspian Energy (CE): Mr. Isayev, how would evaluate the activity of the company in the oil and gas market of Azerbaijan?
Ramin Isayev, General Director, SOCAR-AQS LLC: SOCAR-AQS was established in late 2007 as a joint venture by the State Oil Company of Azerbaijan (SOCAR) and Absheron Drilling Company (AQS) as partners. As a co-founder, SOCAR of the joint venture is bringing its more than 160 years’ experience of industrial drilling of oil and gas wells. The other co-founder, AQS, is contributing latest drilling technologies and brand-new management methods.
The joint venture was established, first of all, to perform in shortest time and minimum costs drilling, construction, completion and custody transfer to the Customer of high-quality oil and gas wells according to the top international standards on safety measures and environmental protection. The second aim was to develop organizational and individual opportunities so as to create a modern competitive drilling enterprise. In the process of drilling and construction of wells we strictly adhere to the policy of values and standards introduced in our company and also requirements of the Customer for the maximally safe, fast and high-quality commissioning of wells. Our company has turned into an industry-leading drilling company. Due to high-quality and accident-free services provided, the company managed to establish a good reputation among customers and today is a world-class competitive drilling company.
Our purpose is drilling and delivery of high-quality, highly productive and effective oil and gas wells ahead of schedule by focusing our operations mainly on quality, safety and operational performance. The main zone of operations performed by SOCAR-AQS LLC covers drilling of oil and gas wells in the Caspian Sea.
CE: Could you, please, provide information on the results of company’s operations during last year? What are the plans for the 2013 year?
Ramin Isayev: Just like during previous 2010 and 2011, in 2012 SOCAR-AQS executed its commitments on successful implementation of drilling operations in an effective way and without incidents. Instead of 17,500 meters of headway determined by the Customer for last year, the company drilled in total 19,547 meters, thereby, the plan was executed by 111.7%. Instead of planned 5 wells, the company drilled and handed over 6 wells to the Customer. Thereby, the company executed the annual plan by 120%.
Health, Safety, Environment and Security achievements underlie all the successes of our company gained in general and in 2012. During the operations the company did not do any harm and damage to human health, environment or equipment. Drilling waste was collected by 100% into tight containers and utilized in special places according to the legislation requirements. To prevent harm to the environment during drilling operations, the company reconstructed the drainage system, and purchased and commissioned environmentally-friendly generators. Besides, our employees passed in total 35,436 man-hours of trainings in the domestic and foreign training centers to improve their professional skills and knowledge.
Acquiring foreign experience and introduction of international standards is very important for turning into a modern company. SOCAR-AQS is making committed efforts in this direction. Company’s major achievement in the field of introduction of international standards was successful passing a repeated certification audit performed by the Swiss Certification Authority, SGS. The audit has covered all the sites of SOCAR-AQS. As a result, the company was accredited according to 3 international standards on ISO 9001 (Quality Management System), ISO 14001 (Environment Management System) and OHSAS 18001 (Occupational Health and Safety). Moreover, the company underwent a 2-stage audit of the processes introduced in the company according to the standards of the American Petroleum Institute (API). Company’s goal for 2013 in this area is to successfully pass the next phase of audit and obtain a certificate on the basis of the API standards.
SOCAR-AQS plans to stay committed to integrating into the international drilling industry and entering the international market in 2013 through development of the personnel potential, mastering new equipment and technologies and improvement of its business processes.
CE: What are the major drilling successes of the company?
Ramin Isayev: One of the major achievements is that SOCAR-AQŞ has completed drilling of Well 308 from Platform 13. This well is to date the fastest of all the Fasila wells ever drilled in Shallow Water Gunashli field. Target depth of the well, which was drilled to Fasila, was 3,000 m. Thus, commercial speed of this well turned out to be the record-breaking, 1842 m/month. Drilling time was 42 days, and drilling depth was 3,009 m. It should be noted that the previous well drilling record on Shallow Water Gunashli was also fixed by SOCAR-AQŞ. At that time, Well 209 was drilled from Platform 11, and achieved the target depth of 3,373 m within 43 days.
It is worth to mention that time for drilling of wells on Shallow Water Gunashli to Fasila Layer as determined by the Customer, is at least 90 days. By introducing new methods of management, standards and new approaches in operations, SOCAR-AQŞ has fulfilled the task much ahead of time. During implementation of its operations, our company attaches great importance not only to the drilling speed of the well, but also to the provision of safe operations at all stages, to the environmental protection and to quality of well construction.
At present, the company carries out completion works at Well 44 on Platform 11, and is also completing preparatory work for drilling Well 315 on Platform 13.
CE: Could you, please, tell about the current fleet of drilling rigs in the company?
Ramin Isayev: Currently, the company conducts well drilling and construction works from 3 drilling rigs located on 2 Deep-water Stationary Platforms (DWSP), for the main Customer – Azneft Production Unit of the State Oil Company of Azerbaijan Republic (SOCAR).
The capacity of the rigs is 2000 HP each. The drilling equipment comprises a derrick or mast, hoisting equipment, a rotary system, well control equipment, systems for storing, treating and pumping drilling fluids, and power generators. Our offshore rigs generally include drilling, production and living quarters, cranes, a helideck and storage areas. The specifications of the drilling equipment determine the drilling capabilities of the rig.
CE: Which latest technologies does the company introduce?
Ramin Isayev: In our drilling operations we are committed to using only brand-new, hi-tech equipment meeting international standards. Among such equipment used nowadays I would like to note the remote tracking system for online monitoring of drilling operations installed on the platform and at company’s office, controlled drilling equipment, different brand-new technologies presented by industry-leading contractors, high-performance pumps, automatic drilling equipment and drilling tools, drilling pipes, topdrive, etc.
CE: How do drilling operations of the company comply with environmental requirements?
Ramin Isayev: When planning measures in the field of environment protection we adhere to the policy of the President of Azerbaijan Ilham Aliyev on protection and improvement of environment. The policy of our company runs as following: “To prevent pollution of the environment by reducing any negative impacts on it in the process of company’s operations”. Generally speaking, in our approach to the environment protection we are guided, finally, by the philosophy of ‘zero discharge of waste’. To achieve this objective we have worked out a programme and a plan on waste management to reduce wastes initially by 10% as compared with the last year. Here included as main actions were: gradual replacement of the old energy equipment with modern one meeting ecological requirements; maximum waste-free and re-use of products and materials for the purpose of reducing the volume of wastes discharged into air; preference to using high-quality spare parts and materials instead of fast-wearing and turned into waste spare parts and low-quality materials. At the same time, the personnel who perform all these works should be always informed and be aware of the ecological aspects emerging during operations of the company, using equipment according to its destination, production and materials, reduction and segregation of waste.
As far as concrete actions for environmental protection this year are concerned, it should be noted signing a contract with the local contract company on removal and recycling of waste. Besides, the company organised special trainings for the personnel covering prevention of pollution, reduction of quantity of waste, and also waste segregation.
At the same time, SOCAR-AQS completed installation of bell nipples on all drilling rigs and construction of screw conveyors for work with drilling waste and drilling solution without doing any harm to the environment.
CE: Does the company plan to expand its operations beyond Azerbaijan?
Ramin Isayev: Our plans for the near future are to expand our operations throughout Azerbaijan and beyond it. Respectively, if we successfully achieve this purpose, we will face the necessity to expand a park of our drilling equipment in order to be able to fulfill requirements of potential Customers in a quality and fast.
The high level of services provided to Customers, the powerful technical equipment, high qualification of the personnel, high occupational health and safety and environmental protection standards, a favorable ratio of quality of works performed by us and their costs, and also accurate dates of performance of works – all these factors have brought the company to the industry-leading positions in the oil market of Azerbaijan and created all preconditions for integration into the international oil industry and operations in international projects. We, the drillers of Azerbaijan, being the founders of the world drilling industry should be proud of our rich heritage. At the same time we should not rest on laurels and go ahead to be able to take a leading niche in the modern international drilling.
I do believe that we have all opportunities for integration into the international drilling industry. In the short term outlook we will keep on expanding our operations by applying latest technologies on drilling, completion and overhaul repair of wells.
The high level of services provided to Customers, the powerful technical equipment, high qualification of the personnel, high occupational health and safety and environmental protection standards, a favorable ratio of quality of works performed by us and their costs, and also accurate dates of performance of works – all these factors have brought the company to the industry-leading positions in the oil market of Azerbaijan and created all preconditions for integration into the international oil industry and operations in international projects. We, the drillers of Azerbaijan, being the founders of the world drilling industry should be proud of our rich heritage. At the same time we should not rest on laurels and go ahead to be able to take a leading niche in the modern international drilling.
I do believe that we have all opportunities for integration into the international drilling industry. In the short term outlook we will keep on expanding our operations by applying latest technologies on drilling, completion and overhaul repair of wells.
