Dragon secures additional jackups for Caspian Sea drilling

Dragon Oil has updated its development operations at the Cheleken Contract Area (CCA) in the Turkmen sector of the Caspian Sea.

Offshore staff

ASHGABAT, TurkmenistanDragon Oil has updated its development operations at the Cheleken Contract Area (CCA) in the Turkmen sector of the Caspian Sea.

A jackup is currently at work by the Dzheitune (Lam) C platform drilling the Dzheitune (Lam) C/183 well. The leased platform-based Land Rig 1 will mobilize to the Dzheitune (Lam) 22 platform to start drilling the Dzheitune (Lam) 22/184 well in September, after completion of maintenance.

The newCaspian Driller jackup has transferred to a shipyard in Kazakhstan in preparation for commissioning. At the end of this year the rig is expected to mobilize to the CCA to start drilling early in 2014.

Dragon has secured another platform-based rig, Land Rig 2, to drill in the Dzhygalybeg (Zhdanov) field. It is expected to arrive in the CCA by end-summer and start drilling soon afterward. However, delivery of the Land Rig 3 is being delayed due to contractor issues and this rig is unlikely to be ready to start drilling until mid-2014.

Recently Dragon Oil signed a memorandum of understanding with BKE Shelf for jackup drilling capacity in the Caspian Sea for a total of three years. The Neptune rig should become available soon and will be contracted for nine months, while the Mercury should become available late next year for use over the remainder of the period.

Dragon has started employing artificial lift on two wells in the Dzheitune (Lam) area with good results. The company plans a more detailed engineering study leading to wider implementation.

Pilot water injection has begun at the Dzheitune (Lam) 75 platform, with the long-term focus of the water flooding on the Dzheitune (Lam) main area.

As for new fixed facilities, installation continues of the Dzhygalybeg (Zhdanov) A platform, which should be ready for drilling in September. Fabrication is progressing of the Dzhygalybeg (Zhdanov) B platform – Dragon is considering options for its future location.

The company continues tendering to award contracts to construct and install up to four wellhead and production platforms on the Dzheitune (Lam) field, and including associated pipelines. All contracts should be issued later this year or early next year, with the platforms due to be built and installed in 2015-2016.

Dragon expects to appoint an EPIC contractor soon to quadruple crude oil storage capacity at the CCA Central Processing Facility (CPF), with production due to reach 100,000 b/d in 2015.

The company additionally has started a tendering process for a contractor to lay another 30-in. trunkline from one of the future platforms in the Dzheitune (Lam) field to the CPF following last year’s front-end engineering design study.

Tendering continues for another EPIC project for a gas treatment plant, with a contract award likely this fall.

7/19/2013

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