Dragon targets more wells offshore Turkmenistan

Sand issues have constrained Dragon Oil’s production from the Cheleken Contract Area in the Turkmen sector of the Caspian Sea.

Offshore staff

ASHGABAT, Turkmenistan – Sand issues have constrained Dragon Oil’s production from the Cheleken Contract Area in the Turkmen sector of the Caspian Sea.

Certain wells had to be choked down, but the company is close to restoring overall oil output to 70,000 b/d.

Remedial measures include installing sand screens in some of the older wells and desander equipment on certain platforms in areas prone to sand production.

This year’sdevelopment drilling program has been optimized to complete up to 16 wells, including two side tracks, by the end of 2012. At the start of this year, the target was for 13 wells.

The extra three wells will be drilled and completed by a jackup and a leased platform-based rig.

Dragon is adding intervals on the Dzheitune (Lam) 13/171 well and drilling the Dzheitune (Lam) C/175 development well. The leased platform-based rig is undergoing scheduled maintenance before drilling a further three wells.

The company expects to take delivery of its newbuildCaspian Driller jackup toward year-end, with the rig scheduled to be ready for drilling early in 2013.

Tendering continues for two land rigs for deployment on the new Dzhygalybeg (Zhdanov) A and B platforms, which should be delivered respectively by the end of 2012 and during the first half of 2013.

Another tender is out for a further jackup, with construction expected to take two to three years following contract award, anticipated in early 2013.

Work on the Dzhygalybeg (Zhdanov) block 4 gathering platform and installation of associated in-field pipelines is almost complete.

Dragon is evaluating bids from contractors to build and install the Dzheitune (Lam) D and E platforms and associated pipelines, and the company expects to issue contracts by end-2012. These platforms will be suited for drilling with a jackup, with eight slots each initially. Further slots may be added, depending on drilling results from these areas.

During 2013, Dragon aims to award contracts for construction and installation of another three platforms on the Dzheitune (Lam) field (the F, G, and H platforms) and associated pipelines.

Capital expenditure for the first six months of 2012 on the Cheleken Contract Area was $208 million, with about 54% taken up by drilling.

Dragon forecasts a production growth rate for 2012 in the range 10%-15%. Its target is to reach 100,000 b/d in 2015, and maintain this level for a minimum five years.

8/01/2012

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