Dragon inviting tenders for Turkmen offshore rigs, platforms

April 16, 2012
Oil Production from the Cheleken Contract Area in the Turkmen sector of the Caspian Sea averaged 70,600 b/d in the first quarter of 2012, according to operator Dragon Oil.

Offshore staff

ASHGABAT, Turkmenistan – Oil Production from the Cheleken Contract Area in the Turkmen sector of the Caspian Sea averaged 70,600 b/d in the first quarter of 2012, according to operator Dragon Oil.

This represents a 22% increase compared to the corresponding quarter in 2011. Five new development and appraisal wells have been put into production so far this year, including a side track of an existing well in theDzheitune (Lam) field.

Three new development wells are currently being drilled in this field: 13/171, 28/169, and C/170, by two platform-based rigs and a jackup.

However, delivery of the new build jackupCaspian Driller is delayed by subcontractor issues and the rig now is expected toward end-2012, ready for drilling in 1Q 2013. It will be leased for five years, with an option for a further two years.

To support the planned drilling campaign in the years ahead, Dragon is seeking to lease further platform-based rigs. It is tendering for two land rigs and aims to secure at least one by the end of the year, which could be ready for drilling early next year.

Dragon has also started the tendering process for up to two newbuild jackups, and aims to award contracts toward the end of 2012. Construction should then take two to three years.

Ongoing infrastructure projects include construction and installation of additional platforms for drilling new development wells, in-field pipelines, and a facilities upgrade to cater for future growth in production.

The Dzhygalybeg (Zhdanov) A platform for block 4 should be delivered by the end of this year and be ready to drill in 1Q 2013. Work on the Dzhygalybeg (Zhdanov) B platform is progressing as planned and the facility should be ready for drilling during the first half of 2013.

Dragon expects construction of the new Dzhygalybeg (Zhdanov) block 4 gathering platform and installation of associated in-field pipelines to be concluded during the second half of this year.

Tendering has started to select contractors to build and install the Dzheitune (Lam) D and E platforms and associated pipelines, and awards are due by end-2012. These platforms will be suitable for drilling with a jackup, with eight slots each initially.

Later this year, Dragon plans to start the tendering process for construction and installation contracts of the Dzheitune (Lam) F, G, and H platforms and associated pipelines. The Dzheitune (Lam) F facility will accommodate a platform-based rig with initially 16 slots, while the Dzheitune (Lam) G and H platforms will suit deployment of a jackup and will have eight slots each.

Dragon will also invite international contractors to build a fabrication yard in the Hazar harbor area in Turkmenistan, offering expanded load-out capabilities, related facilities, and berths, with completion by end-2013.

Earlier this year, the company issued a contract for a front-end engineering and design (FEED) study of another subsea trunkline to transport oil and gas onshore to accommodate planned production growth beyond 2015. This is subject to the outcome of awater injection pilot scheme over the next two-three years, initial flow rates in the Dzhygalybeg (Zhdanov) field, and overall performance from the area.

Over the next two to three years, Dragon Oil plans to undertake a berths upgrade, channel dredging, and breakwater construction at Aladja Jetty and in the harbor area to enhance its operational and crude oil loading capacity.

Finally, Dragon plans to triple crude oil tank storage capacity at the Central Processing Facility: a FEED study is under way.

4/16/2012