Dragon increases rig fleet offshore Turkmenistan

Dragon Oil has updated its development drilling operations on the Cheleken Contract Area (CCA) of the Caspian Sea, offshore Turkmenistan.

Feb 25th, 2014

Offshore staff

LONDON – Dragon Oil has updated its development drilling operations on the Cheleken Contract Area (CCA) of the Caspian Sea, offshore Turkmenistan.

The jackupElima, under contract until May 2015, will side track the B/155 well from the Dzheitune (Lam) B platform.

A second jackup,Neptune, is preparing to spud the Dzhygalybeg (Zhdanov) 21/101 development well. Neptuneis available for nine months, after which Dragon expects to take delivery of the Mercury jackup in the Caspian Sea during 4Q 2014.

TheCaspian Driller jackup rig is expected to reach the CCA in mid-2014 to start a five-year lease and management contract, with an option for two more years.

Land Rig 1 will soon spud a well on the Dzheitune (Lam) 22 platform, and will complete a total of three wells before its release.

Another platform-based rig, Land Rig 2, secured for at least two years, is preparing to drill from the Dzhygalybeg (Zhdanov) A platform, starting with the A/102 well. Land Rig 3, also contracted for a minimum of two years, will work on the new land rig platform on the Dzheitune (Lam) field.

Last June Dragon started two artificial lift projects. One, a water injection pilot scheme, has had positive results in offset wells in the pilot Dzheitune (Lam) 75 area. A current injection rate of 3,500-4,000 b/d of water in the injector well has led to an average increase of around 100-150 psi (6.8-10.3 bar) in the offset wells.

Reservoir pressure in the pilot area is also increasing. Water injectivity tests are under way at another platform.

Dragon Oil plans to expand water injection to two platforms this year, and will use results from the pilot project and a new dynamic model to assess feasibility of more waterflood extensions. The goals are to maintain pressure, sustain production rates, and increase reserves recovery.

Under the second program, the company installed jet pumps in two wells on the Dzheitune (Lam) 13 platform, 13/118 and 13/168, resulting in oil production rises of 500-700 b/d per well. Jet pump operations could be extended to include 14 more wells this year.

Dragon plans structural strengthening this year of the Dzheitune (Lam) C, 4, 28, and B platforms to allow more well slots to be added. Additionally, it is tendering for construction and installation of more platforms for the Dzheitune (Lam) and Dzhygalybeg (Zhdanov) fields.

P&A’ing and decommissioning continues of old non-producing wells and non-producing platforms in the CCA. So far five wells have been P&A’d, and the company will evaluate up to nine more prior for similar work this year.

02/25/2014

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