Turkmen fields deliver further growth

Offshore staff

ASHKABAD, Turkmenistan -- Production from the Cheleken Contract Area fields in the Caspian Sea averaged 46,420 b/d of oil during the first half of 2010.

According to operator Dragon Oil, this represents an 8% increase over the comparable period last year, although planned output still was constrained by infrastructure issues.

However, the situation should improve during the second half following installation of the 30-in. (76-cm) trunkline to the Turkmen mainland, infield pipelines, and the upgrade of the onshore Central Processing Facility.

Also during the first half of 2010, Dragon completed four development wells and three workovers, with a further two development wells and one sidetrack concluded earlier this month.

Two wells that were due to be sidetracked by Rig 40 on the Dzheitune (Lam) 13 platform were instead worked over by means of wireline operations, delivering incremental production of around 700 b/d of oil. Output from these wells should be further optimized during the remainder of the year.

Dragon has contracted four platform/offshore drilling rigs for its development program. Of these, Rig 40 will now be cold-stacked on the Dzheitune (Lam) 13 platform, but could be reactivated for more workovers at some point.

TheAstra jackup has been demobilized after completing its short-term contract, although it could be re-contracted in future.

The platform-basedNIS rig, under contract through Q4 2011, has mobilized to the Dzheitune (Lam) 28 platform to drill a series of development wells, of which the first was completed this month. The current 28/147 well should be finished in September.

Finally, the Iran Khazar rig has completed a sidetrack of the Dzheitune (Lam) A/129 well and is undergoing routine inspection prior to further drilling on the Dzheitune (Lam) B platform. It should then drill and complete a further two wells by year-end.

Dragon’s first-half program incurred capital expenditure of around S$174 million ($127 million), of which 35% went on infrastructure and the remainder on drilling. Over the whole of 2010, infrastructure capex should total S$250 million ($182 million), with commitments totalling S$600-700 million ($437-510 million) for infrastructure projects during 2010-12.

The company Oil aims to complete 11 new development wells this year, and is aiming for average production growth of 10-15% per year during 2010-12

07/22/2010