Caspian Energy (CE): Mr. Iskenderov, could you please comment on the achievements of Azneft PU in 2014 and the goals set for 2015?
Dashgin Iskenderov, General Director, SOCAR Azneft PU: In 2014 Azneft PU produced 6,817,069 tonnes of oil instead of planned 6,810,000. The planned target was fulfilled by 100.1%. Above-target oil production by Azneft PU was fixed at 0.1% or 9,063 tonnes of oil compared to the previous year.
The oil transportation plan has been fulfilled by 100.1%. I.e. a total of 6,783,746.672 tonnes (+6146.672) of oil was delivered instead of planned 6,777,600 tonnes. Oil delivery has been increased by 4,406.286 tonnes compared to the figures of the same period of previous year.
Last year real gas production totaled 6,399,273thou cubic meters (+259273 thou cubic meters) instead of planned 6,140,000 cubic meters of gas. The plan fulfillment totaled 104.2%. Compared with the figures of the past year, gas production declined by 173,912 thou cubic meters.
The gas sale plan was fulfilled by 131.8%. So, 5,677,269.16 thou cubic meters (+1,368,769.16 thou cubic meters) of gas was delivered instead of planned 4,308,500 thou cubic meters. Gas sale fell by 172,613.42 thou cubic meters compared with the figures of the past year.
Since the beginning of the year the Production Union has commissioned 68 wells, after completion of drilling, instead of earlier scheduled 87 wells. Oil production at these wells totaled 196,532 tonnes instead of planned 181,315 tonnes of oil. It exceeds the plan by 15,032 tonnes.
94 out of planned 77 wells, which had been in the idling well stock, were repaired and operation resumed on them in 2014. As a result, 37,404 tonnes of oil was produced instead of planned 27,243 tonnes. Compared with the figures of the past year, the commissioning of wells from the idling stock fell by 48 units.
730 geological operations were performed in 2014, which enabled to produce 330,337 tonnes of oil. It is 60,430 tonnes above the plan. 4,607 technical measures were taken in the same year instead of planned 3,400. As a result, oil production totaled 62,329.3 tonnes of oil (9,377 tonnes above the plan).
Tasks assigned to SOCAR by President of the Republic of Azerbaijan Ilham Aliyev to turn into the world level competitive company oblige SOCAR to prepare a promising strategic plan on future development. Therefore, based on the order of SOCAR, Azneft PU developed and approved a “comprehensive plan on strategic development until 2015”. Forecasted oil and gas production figures have been set until 2025 with the purpose to implement the order.
CE: How successful is the program of events for 2013-2015 being implemented?
Dashgin Iskenderov: The main objective of the oil strategy of Azerbaijan is to ensure rational use of oil and gas wealth of the country for the welfare of our people. One of the main tasks facing the oil companies is to successfully fulfill state plans and tasks, stabilize oil and gas production and relatively increase production. In this regard, SOCAR has assigned Azneft PU a task to increase oil and gas production.
For this purpose, Azneft PU prepared a program of events aimed at stabilization of oil production.
To prevent oil-gas production decline through 2014 and stabilize oil-gas production, Azneft PU, taking the scientific and technical basis into consideration, took purposeful and weighted geological, technical and organizational measures at producing and idling well stocks. According to the actions plan, it is planned to expand the second and third stimulation methods, take geological-technical measures at producing well stock, expand introduction of screw pumps and paraffin treatment plants, expand promising areas for drilling of oil-gas wells, repair an area of emergency hydrotechnical units, build platforms and increase drilling points from existing platforms.
According to the plan, 259 wells have to be drilled in 2013-2015, which shall ensure production of 582,499 tonnes of oil and condensate, to bring 234 idling wells back on production and ensure additional production of 85,230 tonnes of oil, deploy 121 screw pumps, use 105 units of paraffin treatment units, build 18 new sites and platforms, repair 29 sites with an emergency hydrotechnics, introduce 91 gravel-packed filters, construct gas-lift and transport compressor stations at Gunashli field as well as construct a compressor station on Neft Dashlary field (Oil Rocks).
CE: What are the real opportunities for increasing oil-gas production?
Dashgin Iskenderov: Drilling of horizontal wells, expansion of geological-technical operations and water injection processes, introduction of advanced techniques are important aspects along with drilling of vertical and directional wells to ensure productive development of fields and increase oil-gas output.
Introduction of modern programs, based on geological and geophysical data of development work carried out on fields, gave positive results for setting the model of fields and retesting of chosen formations.
Use of ready filters, introduction of new types of pumps during production, deployment of new techniques against paraffin deposits also yield positive results.
CE: Which fields and promising areas are of particular interest from the standpoint of production growth?
Dashgin Iskenderov: Particular importance is attached to developments at all under-operation fields in order to stabilize and ensure partial increase of production. However, the important task is to ensure production on Guneshli field which accounts for major production. Neft Dashlary, Bulla, West Absheron fields are assuming special importance from the standpoint of maintenance of stable production in coming years.
Goshadash field is also promising from point of its oil-gas content and prospectiveness.
CE: Which innovative drilling solutions are applied both onshore and offshore to raise oil production?
Dashgin Iskenderov: I can name a few solutions applied by Azneft PU. The first is use of the new equipment “Top – Drayvel” produced in China and USA. It increased the quality and speed of drilling. The second is prevention of pollution of formations when discovering productive strata. In such cases, water based fluid must be replaced by hydrocarbon based fluid in order to raise oil production. The third solution - ready filters have recently been used for completion of big wells. The fourth solution is the replacement of drilling fluid with salt fluid to prevent pollution of productive horizons during the perforation.
Azneft PU regularly tracks global trends of innovative solutions in the oil industry and actively deploys them to raise oil production.
We will keep making all efforts to fulfill a comprehensive plan on strategic development and solution of tasks assigned by the management team of SOCAR and the government of the country in order to increase and stabilize oil production in Azerbaijan.
