Caspian Energy (CE): What objectives does Azneft Production Union (PU) set up to achieve in coming years, in particular on the Activity Plan 2013-2015?
Dashgin Iskenderov, General Director, SOCAR Azneft PU: As you know, Azneft PU has developed the Activity Plan for 2013-2015. The scheduled measures include expansion of the second and third artificial recovery mechanisms, increase in geological and technical measures, drilling a dual well, and expansion of potential oil- and gas-bearing areas for drilling new oil and gas wells. The Activity Plan 2013-2015 aims drilling of 259 wells and production of 582,499 tonnes of oil and condensate, rehabilitation of 234 wells from the idle well stock into active wells with the output of 85,230 tonnes of oil, also introduction of 121 screw pumps and 105 paraffin removal units, construction of 18 new sites and jackets, repair of 29 sites with emergency hydrotechnical facilities, installation of 91 gravel filters, construction of a gaslift unit and a new compressor station on the Gunashli field, construction of a compressor station on the Neft Dashlary (Oil Rocks) field.
CE: What was the scope of oil and gas output for the first six months of 2014? What are the target figures for year-end?
Dashgin Iskenderov: For the first six months of 2014 Azneft PU produced 3,445,902 tonnes of oil. Of special notice is that the plan was fulfilled by 102%. The output in excess of the plan made 68,902 tonnes of oil. The gas production for the first six months of 2014 reached 3.4bcm. Here, the output was also ahead of schedule, making 111.7%. The output in excess of the plan was 355 mio cubic metres. In total, in 2014 Azneft PU aims to produce 6 ml 810 ths. tonnes of oil and 6 bn140 ml cubic meters of gas.
CE: Which works have been performed on Gunashli and Chilov fields operated by May 28 OGPD? What is the number of already drilled wells? How many wells are yet to be drilled? Could you please speak about figures to be achieved by the year of 2014?
Dashgin Iskenderov: With account of available residual oil and gas reserves of these fields, we plan to drill new wells on the fields in 2014. In total, as of August 1, 2014 four oil wells with the output of 30,232 tonnes of oil and condensate and 4,737 ths. cubic metres of gas were drilled and commissioned on the Gunashli field. By the year-end we plan to start drilling of six wells and put four wells into operation on the field. Drilling of two oil wells will be commenced on platform#112 to be built on the Chilov field and one more oil well will come on stream. In total, our aim for the Gunashli and Chilov fields is to drill and commission 11 wells with the projected output of 93,765 tonnes of oil and condensate and 34 mio 050 ths. cubic metres of gas.
CE: Which exploration works were performed in the first six months of 2014? How efficient were they?
Dashgin Iskenderov: Following the performed seismic survey, exploratory drilling was carried out on the Tumbul area of the Nakhchivan AR during the first six months of 2014 for the purpose of creating underground gas storage. Neftgazelmitatgigatlayiha Research Institute started working out proposals on the area capacity in terms of technical-and-economic indexes. Exploratory drilling was also carried out on the Aghburun site of the Absheron archipelago. The works included a study of the tectonic structure of the site as well as prospecting work on perspective structures in terms of lithologic properties such as profile and oil and gas bearing capacity.
2D and 3D seismic survey is currently in process on the Khazaryani-Guba oil and gas-prone area, in particular on Gedisu-Sitalchay, Goshadash, Gazanbulag-Ziyadkhan sites, as well as complex geological survey works on Zorat-Deniz and Yanan-Tava sites. Besides, large-scale R&D works were performed on the Yevlakh-Agjabedi plane, and on Sangachaly-Deniz-Babek and Absheron-Balakhani coast elevation areas.
CE: What do you think about the process of improvement of oil and gas production technologies to raise the producible oil index?
Dashgin Iskenderov: I would like to especially notice that one of the key objectives for Azneft PU is to use the potential of probable oil reserves on the operated fields and raise the producible oil index, using brand new equipment and technologies. For 6 months of 2014 Azneft PU carried out 16 activities and instead of scheduled 1,285 tonnes of oil the output made 4,775 tonnes. The production in excess of plan made 3,025 tonnes vs. the same period of the last year.
In 2014 Azneft PU pays special attention to research and practice works in the field of new equipment and technologies. Nanotechnologies are applied in the oil industry. At present the active wells on Azneft PU-operated fields make 3,700 units. Of this, 65% are low-output water wells used to operate the wells on the final stage of development. Nanotechnologies are applied on 25 wells that work by means of a nanoliquid deep-well pump, which is the carrier of nanoparticles of metal and gas-lift. Nanotechnologies enabled to increase the oil output, cut down expenses on electricity required for oil production and reduce the amount of water in produced liquid.
In the first six months of 2014, Azneft PU used Russian-made paraffin removal equipment to remove paraffin in lift pipelines of N.Narimanov OGPD and Neft Dashlary OGPD. This equipment is currently used on 35 wells of N.Narimanov OGPD and 10 wells of Neft Dashlary OGPD. For the purpose of increasing reservoir recovery, Azneft PU applies acid to clean bottom of wells and filters.
The measures taken on 41 wells enabled to produce additional 320 tonnes of oil. As a result of increased porosity in the filter zone achieved with the help of liquid glass and increased conductivity, on nine wells of Neft Dashlary OGPD extra 750 tonnes of oil were produced.
CE: Which environmental activities is Azneft PU implementing this year?
Dashgin Iskenderov: This year Azneft PU has been involved in lots of environmental projects, in particular, utilization of stratum waters in the closed system, protection of the environment during major and current repair of wells in the closed system, oil polluted lands clean-up.
In view of environmental protection and carrying out major workover and running maintenance, 2.8 mio cubic meters of reservoir waters produced together with oil were utilized on all OGPDs. Besides, 8 units of wash-over equipment were prepared and commissioned. Azneft PU carried out reclamation and landscaping works on 13.4 hectares of oil polluted areas of the operated fields.
To reduce air emissions of associated gas produced together with oil, gas on 124 onshore wells was collected and injected back into the system and integrity of annular space of 488 wells was provided. During this period Azneft PU performed a number of works to improve social conditions of oil industry workers as well.
In accordance with the order No. 259 of Azneft PU, in January-July 580 young specialists expanded their expertise during Stages 1 and 2 of the Accelerated Development Program. Stage 3 is in process in July-September. Also, OGPD hosted 16 meetings of young specialists with scientists, and lectures were listened.
CE: Which works have been performed in the construction field?
Dashgin Iskenderov: In this field we also performed extensive works, which are currently in process too. In particular, the construction of a gas-lift compressor station on the Gunashli field of May 28 OGPD is on the final stage. Azneft PU shall allocate capital investments worth 830 million AZN to carry out construction work in 2014. Spending for 7 months of 2014 was 512.4 million AZN, which is 12.9 million AZN up vs. the similar period of the last year. I would like to note that out of the total sum of capital investments in 2014, 396 million AZN will be used on drilling works.
