Сaspian Еnergy (CE): Azneft Production Union accounts for the majority of oil and gas resources that SOCAR produces. Has Azneft been assigned to increase oil and gas production? 

Dashgin Iskenderov, General Director, SOCAR Azneft PU: The main objective of the oil strategy of Azerbaijan aims at efficient use of oil-gas resources for the sake of people. 

Therefore, one of the main tasks set to oilmen in 2013 is a successful performance of assigned jobs and the state plan envisaging stabilization of oil-gas production along with its partial growth. 

Azneft PU developed a Plan of Actions for 2013-2015 in order to stabilize and increase oil production. 

СЕ: What are the forecasts on oil&gas production for 2013? What work has already been carried out in this direction over the past period of this year? 

Dashgin Iskenderov: The task to produce 6.752 mln tons of oil and 6.170 bcm of gas has been set for 2013. According to the results of 3 months of 2013 and based on scientific-technical basis in all production lines, be it operating or non operating wells, Azneft PU started performing purposeful geological, engineering, technological and administrative activities in order to prevent oil&gas production decline and finally ensure stability in extraction. 

Following the results of 2012, Azneft PU fulfilled an oil production plan by 100% and produced 323 tons of oil above the plan. 

Azneft PU performed gas production plan by 95.4% and produced 6.526 bcm. 

PU has commenced performing a Plan of Actions for 2013-2015 aiming at stabilization and growth of oil production. 

A gas lift compressor station is planned to be built on Gunashli field over the mentioned period along with construction of a deep-water offshore platform #7 designed for drilling of 20 production wells, deep-water offshore platform #17 for drilling of 20 wells and reconstruction of deep-water offshore platforms # 6,8,10,11,13 and #14 for drilling of new wells. 

Besides, the platforms will undergo upgrading; fixed offshore platforms #740 and #700 will be built for drilling 8 and 16 production wells (respectively) on Banka Darvina field. 

Measures are undertaken for increasing annual production by Neft Dashlari OGPD. Thus, construction of a fixed offshore platform #2585 has been completed for drilling of 12 production wells. The work on commissioning well #2602 and drilling of the well # 2547 is underway. Reconstruction work is carried out on a fixed offshore platform #1887 for additional drilling of 4 production wells. The well #2677 is being drilled for this purpose. 

Construction work is continued on fixed offshore platform #2150 (Neft Dashlari field) for drilling of production wells along with the erection of the trestle floor designed for production wells. 

Besides, fixed offshore platforms #602A, #1637A, #620A are planned to be drilled for drilling of 14, 10 and 8 production wells respectively. 

In particular, it was deepwater offshore platforms #1145, 1284, 2887, 1201 and certain sites of Neft Dashlari OGPD where overall repair operations were performed. They were equipped with modern living and sanitary conditions. 

Capital repair work was carried out at May 28th OGPD’s deepwater offshore platforms #9, #15 which were supplied with necessary domestic equipment. 

Repair work is currently underway at deepwater offshore platforms #6, 10, 11. Hot-cold system is being installed at platform #8. 

СЕ: Gas volumes injected into underground gas storages are growing year by year. What could you tell about the volume of gas to be injected into gas storages in 2013? 

Dashgin Iskenderov: The Department for operation of gas storages is engaged mainly in injecting gas in spring-summer months in order to supply the population and industrial facilities in autumn and winter. 

Garadagh and Galmaz underground gas storages operate within the Department. Gas injection into Garadagh and Galmaz underground gas storages has been commenced since 1986 and 1974 respectively. 

A total of 1 bln 266.8 mln cubic meters of gas was planned to inject into storages in 2012 whereas this figure totaled 2 bln 114 mln cubic meters. I.e. 847.2 mln cubic meters were injected above the plan. 

СЕ: Is there any work being carried out for increasing capacities of two underground gas storages operating in the republic? Is there a need for construction of new gas storages? 

Dashgin Iskenderov: Injection of a total of 1 bln 682 mln cubic meters of gas into underground gas storages is anticipated in 2013. According to the plan, it is 415.3 mln cubic meters higher than the figures fixed last year. 

Gas injection season into Garadagh and Galmaz has started since 13.04.2013 and 09.04.2013 respectively. A total of 253.2 mln cubic meters of gas (information as of 09.05.2013) has been injected into the gas storage so far. 

СЕ: Which measures are undertaken for renewing an active and non active wells stock of SOCAR? What could you tell about the active and non active wells stock?

Dashgin Iskenderov: Since the beginning of the year, the Production Union has resumed the operation of 10 non active wells which are producing 10342 tons of oil. It is 4556 tons above the plan. 

27 out of planned 13 non active wells were restored and relaunched within 3 months of 2013. As a result, 5022 tons of oil were produced in stead of 826 tons. 211 out of planned 112 (139 activities were carried out within thee months of 2012) geological activities have been carried out since the beginning of 2012. It enabled to produce 25304 tons of oil that is 17392 tons above the plan. 

1018 technical activities were carried out over the reporting period in stead of scheduled 724 (871 activities were carried within 3 months of 2012). As a result, produced was a total of 15239 tons of oil that is 4031 tons above the plan. 

СЕ: How is the oil sale plan performed within Azneft?

Dashgin Iskenderov: Azneft Production Union produced 1 mln 694.6 thousand tons of oil during January-March 2013 in stead of planned 1 mln 665 thousand tons. The plan was fulfilled by 101.8%. 

Production Union has overfulfilled an oil sale plan since the beginning of the year. A total 1 mln 688 thousand tons of oil (31, 000 tons above the plan) were sold in stead of planned 1 mln 657 thousand tons. 

The natural gas production plan was fulfilled by 102.5%. Thus, a total of 1 bln 580.7 mln cubic meters of gas (39.0 mln cubic meters above the plan) was produced in stead of planned 1 bln 541.7 mln cubic meters of gas. 

The gas sale plan was fulfilled by 104.8%. I.e. a total of 1 bln 425.5 mln cubic meters (66.8 mln cubic meters above the plan) were submitted in stead of planned 1 bln 385.7 mln cubic meters. 

СЕ: Are modern technologies applied during technical and repair operations? Do they give the expected result?

Dashgin Iskenderov: Azneft PU has attached special importance to production of new technologies since 2013. A complex program for introduction of new technologies has been worked out. The program is based on development of the science-research institute Neftgazproject and other designated organizations, experimental-design bureaus, as well as on introduction of advanced foreign equipment. 

Azneft PU’s N.Narimanov OGPD applies paraffin resistant hot condensate injection into wells. 

PADUS-2 unit has been tested on well #485 in order to simplify the process of tubing cleaning from paraffin. This unit is currently operating in two wells. There is no need for injecting condensate owing to this unit. Usage of special equipment designed for pipe cleaning from paraffin ensures stable operation of the well along with the extension of its service life. It also enables to increase production by 30-50% on each well. 15 more PADUS-2 units are planned to be bought and commissioned by the end of May. 

While performing operations for Absheronneft OGPD, Oil & Gas ProServ LLC used progressive cavity pumps (PCP) of Cameron company. Operation of 15 PCPs enabled to save 179934 kWh electricity over this period. PCPs have numerous advantages. Among them noteworthy are a much longer period between overhauls, low operating costs and economic consumption of electricity, simplicity and low costs of assembling operations, efficient sand resistance, compact and silent operation of the equipment, minimal enviromental pollution, etc. 

The monitor of the control block shows basic well production characteristics that enable to automatically watch over all processes running in the well. PCP’s are used in wells with high amount of water breakthrough and sand. Unlike bottom-well and rotary submersible pumps, they consume electricity 3 or 5 times lower. Technical control over electric progressive cavity pump, power protection and modern control measuring devices are set on the control block and managed by certain regulators. 

Different methods of physical and chemical effects (Laprol 3603-2-12, gassed cementing slurry) were applied at low permeability stratums for prevention of sand and formation waters emergence on the well bottom. Introduction of bottom hole pumps meant for cleaning of well plugs turned out an efficeint protection from gas and sand. 

Besides, 35 units meant for smooth control of wells will be introduced in the second half of the year. 

In general, owing to attention and concern that President of the Republic of Azerbaijan Ilham Aliyev showed over the past years, SOCAR has turned into one of the modern oil companies. In particular, strengthened was a material–technical base of oil industry along with growth of importance attached to introduction of modern technologies. 

Today, Azerbaijan is playing an important role in the energy security of EU countries and its authority is growing year by year. We will try to get all the assigned tasks done in proper manner by mobilizing all our efforts.