Caspian Energy (СЕ): Mr. Iskenderov, which works are scheduled for fulfillment within the frames of the program for 2013-2015?

Dashgin Iskenderov, General Director, SOCAR Azneft PA: The tasks set up by President of the Republic of Azerbaijan Ilham Aliyev for the State Oil Company of Azerbaijan (SOCAR) along with elaboration of a strategic plan on development rest a great responsibility on Azneft PA as a structural unit of SOCAR.     

In this connection Azneft PA has prepared a draft complex plan on strategic development. The plan envisages expansion of the second (water and gas injection) and third (thermal, chemical and physical treatment) stimulation methods, geological and technical operations on producing wells, expanded usage of cavity pumps, active introduction of paraffin removal units, provision of brand-new and high-quality equipment (special-purpose machinery, equipment and tools) for repair crews who are to perform overhaul repair of wells and accelerated repair, drilling of sidetrack wells, expansion of perspective areas for drilling of new oil and gas wells, construction of new platforms and addition of drilling sites on the existing platforms.            

Out of the fields controlled by May 28 OGPD, now in operation are Gunashli and Chilov fields. Taking into account the remaining oil and gas reserves, drilling of producing wells shall be continued in the forthcoming years. Two deep-water offshore platforms (DWOP #7 and #17 GMO) shall be constructed on Gunashli field. Drilling from platform #7 will be launched on March 20, 2014 and from platform #17 on August 1, 2015. As many as per 20 wells shall be drilled from each platform. In 2014 2 wells will be drilled from DWOP #14, 3 wells from DWOP #13, 3 wells from DWOP #11, 1 well from DWOP #19 and 2 wells from DWOP #8. Drilling operations on the Chilov field will be continued from platform #112 to be installed in 2014-2015.

In total, as of September 1, 2013 the plans were to drill 5 wells and produce 26,120 tons of oil and condensate and 54,615 cubic meters of gas on Gunashli and Chilov fields. Actually, 5 wells have been drilled and 38,140 tons of oil and condensate and 38,711 cubic meters of gas produced. According to the plan, 25 wells shall be drilled and commissioned in 2014 and 7 wells in 2015. Accordingly, scheduled production from these wells will reach 113,860 tons of oil in 2014 and 67,680 tons in 2015. 

Geological work on 26 wells to be followed by production of 38,230 tons has been subjected for implementation since the beginning of the current year. Actually geological operations were performed on 31 wells and subsequent production from these wells comprised 85,668 tons.

To produce the remaining oil reserves on Neft Dashlary field, in 2013 Neft Dashlary (Oil Rocks) OGPU plans to complete construction of fixed offshore platforms (FOP) #2585 and #2150, platform # 418a, to put in operation 8 oil wells. In 2014 the OGPU shall complete construction of platforms #602a and #1637a and put into operation 30 oil wells. In 2015 the OGPU shall accomplish construction of the fixed offshore platforms #1954a, #1541a, #620a, #753 and #755 and to put into operation 49 oil wells.

In general, as of September 1, 2013 the plan envisaged to drill 5 wells and produce 9,320 tons of oil. Actually, 8 wells were drilled and 9,762 tons of oil produced. According to the forecast, 30 wells shall be drilled in 2014 and 49 wells in 2015 as well. Oil production from these wells is to comprise 57,460 tons in 2014 and 71,105 tons of oil in 2015. 

Wells #1887 and #1878 were repaired and commissioned with the use of a drilling derrick of platform #1887 from May 31 to June 8, 2013. 

N.Narimanov OGPU now operates 4 oil and gas condensate fields (Sangachal Deniz-Duvanly Deniz-Khara Zira adasy, March 8, Alat-Deniz and Bulla-Deniz).

To ensure production of the remaining oil and gas reserves on these fields, in 2014 the OGPU plans to produce 378 tons of oil from 24 wells after completion of repair work on platforms #116, #187, #287a, #60, #279, #447, #220, #310, #601, #42, #340, #343. In 2015 the OGPU will produce 36 tons of oil from 8 wells upon completion of repair work on platforms #241, #279, #282, #283, #330, #233, #353.

According to the plan, 1 well (prospecting well #23 on Alat-Deniz) has come on stream since the beginning of the year. This well produced 782 tons of condensate and 10.1 million cubic meters of gas. The performed repair on platforms #144 and #379 followed the commissioning of wells #379, #380 and 454 which produced 991 tons. 

Geological work on 3 wells to be followed by production of 1,600 tons has been subjected for implementation since the beginning of the current year. Actually geological works were performed on 4 wells and subsequent production from these wells made 2,543 tons.

Absheronneft OGPU currently operates 5 fields: (Pirallakhi adasy, Darwin Kupasi, Absheron Banka, Garbi Absheron and Gurgan-Deniz). To produce the remaining oil and gas reserves on Darwin Kupasi field, the OGPU plans to finish construction of platform #714 and drill 8 wells. In 2014 the OGPU plans to finish construction of platform #740 and drill 16 wells, and to drill 10 horizontal wells from platform #20 on Garbi Absheron field. In 2015 the OGPU plans to drill 10 horizontal wells from platform #760 on Darwin Kupasi field and drill 20 horizontal wells after completion of construction works on platforms #10 and #54 on Garbi Absheron field.

In general, as of September 1, 2013 the plan envisaged to drill 18 wells and produce 7,931 tons of oil. Actually, 15 wells were drilled and 7,740 tons of oil produced. According to the forecast, 55 wells shall be drilled and commissioned in 2014 and 47 wells in 2015. Oil production from these wells is to comprise 65,275 tons in 2014 and 79,679 tons of oil in 2015. 

Geological works on 18 wells with further production of 1,525 tons have been scheduled for implementation since the beginning of the current year. Actually geological works were performed on 55 wells and subsequent production from these wells made 3,972 tons.

СЕ: Could you, please, summarize the results on oil and gas production since 2013? 

Dashgin Iskenderov: In January-July 2013 Azneft’s OGPDs produced 3,970,824,000 tons instead of 3,922,500,000 tons. Thus, the plan was executed by 101.2%. 

For the considered period of 2013, Azneft actually produced 3,696,876,000 cubic meters of gas (+92,076 cubic meters) instead of scheduled 3,604,800 cubic meters of gas. The custody transfer to the state actually comprised 3,166,629,607 cubic meters of gas (+768,839,607 cubic meters) instead of scheduled 2,397,790,000 cubic meters of gas, thus executing the plan target.

СЕ: What volumes of gas are to be injected into underground gas storages (UGS) in 2013 and how much gas has been already injected into storages? 

Dashgin Iskenderov: In 2013 1,637,900,000 cubic meters of gas shall be injected into underground gas storages, while actually 1,269,041,697 cubic meters have been injected during the gas injection season (727,082.963 thousand cubic meters in Garadagh underground storage and 541,958.734 thousand cubic meters in Galmaz underground storage). The injection process is currently underway. 

СЕ: Could you please provide details on producing and non-operating wells stock?

Dashgin Iskenderov: As of July 1, 2013 the number of Azneft PA’s operating wells comprised 3,706 wells (as of January 1 this indicator reached 3,828 wells).  3,227 wells of the amount fall to the share of producing wells (as of January 1 - 3,224 wells), 461 wells fall to the share of non-operating wells (as of January 1 - 586 wells) and 18 wells are subjected to development after being drilled.

СЕ: How useful were cutting-edge technologies in the process of implementation of engineering and repair works?

Dashgin Iskenderov: Azneft PA stays strongly committed to introducing new equipment and technologies into production. So, since the beginning of the year the PA has been developing programs of complex operations for bringing new equipment and technologies to production sites. The main component of the program is to introduce developments of Neftgazelmitatgigatlayihya institute of SOCAR and other research and developmental organizations to production sites, including state-of-the-art foreign and local tools and equipment.

Methods to prevent sand and reservoir water penetration into well tops were applied as the way to affect layers and different physical and chemical methods were used in hard-to-reach layers. 

Among these operations noteworthy is the use of a number of developments against saline and paraffin sediments. Thus, Padus-2 units were installed and commissioned on pumping-compressor pipes of Oil Stones (Neft Dashlari) and N.Narimanov OGPDs in order to prevent sediments of paraffin, asphaltene and pitch. As the result, the volume of periodical operations on purification of above-mentioned sediments was reduced by 17 wells and their stable operation has been ensured. 

Application of compounds, cleaning units preventing salt and erosion formation, introduction of devices for protection of pumps from gas and sand on wells turned out efficient. 

In general, operations on use of new technique and technologies have been introduced at 239 facilities of Azneft PA enterprises. As the result, additional 1654 tons of oil were produced. 

Meanwhile, implementation of 2010-2015 Nanoneft program approved by SOCAR President is underway.