More rigs arrive for CCA development in Caspian Sea

Dragon Oil has contracted BKE Shelf Ltd to lease and manage two LeTourneau S116E jackups on the Cheleken Contract Area (CCA) of the Turkmen sector of the Caspian Sea.

Offshore staff

ASHGABAT, Turkmenistan --Dragon Oil has contracted BKE Shelf Ltd to lease and manage two LeTourneau S116E jackups on the Cheleken Contract Area (CCA) of the Turkmen sector of the Caspian Sea.

TheNeptune drilling rig will work for Dragon for nine months, starting on the Dzhygalybeg (Zhdanov) 21 platform. The Mercury drilling rig should become available in 4Q 2014 and will work for around two years.

Recently,another jackup completed two wells on the Dzheitune (Lam) C platform. The Dzheitune (Lam) C/183 well was drilled and completed as a dual producer to a depth of 2,758 m (9,046 ft) in August. Dzheitune (Lam) C/184 well was drilled to a depth of 2,900 m (9,514 ft) and completed as a single producer in September.

Both wells are in production with testing likely to following commissioning of an additional pipeline between the Dzheitune (Lam) C and 28 platforms. The rig has since skidded to the next slot to drill the Dzheitune (Lam) C/185 well, and is scheduled to drill and complete one further well before year-end.

Dragon’s leased platform-based rig is undergoing scheduled maintenance but should begin drilling on the Dzheitune (Lam) 22 platform later this fall, where it will complete one well before year-end of the year. Land Rig 2 should arrive shortly for drilling on the Dzygalybeg (Zhdanov) A platform.

Awater injection pilot project started in Dzheitune (Lam) 75 in June, with early indications of positive pressure response in the pilot area. Dragon plans to expand water injection operations to two or three more platforms next year, the aims being to maintain pressure, sustain production rates, and increase reserves recovery.

Also in June, the company installed jet pumps to increase production and enhance recovery in two wells on the Dzheitune (Lam) 13 platform: 13/118 and 13/168. In each case, oil production has risen as a result by 500-700 b/d. Another jet pump will likely be installed in a third well on the same platform, with plans to expand jet pumps operations to other platforms during 2014.

Average Cheleken field production for Q3 2013 was around 74,300 b/d, a 7% increase of 7% over the corresponding period in 2012.

10/4/2013

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