Dragon Oil starts Caspian Sea decommissioning, abandonment review

Offshore staff

ASHGABAT, Turkmenistan – Dragon Oil is working on a strategy for plugging, abandonment and decommissioning of old non-producing wells in the Cheleken Contract Area in the Turkmen sector of the Caspian Sea.

The company has identified groups of wells based on status and age, and has awarded a contract to a company specializing in offshore well P&A.

It expects up to 15 non-producing wells to be plugged starting from 3Q 2011 and throughout 2012. The cost of the project will be covered from the abandonment and decommissioning funds.

Otherwise, Dragon’s development drilling program is progressing on schedule with seven wells put into production in during the first half of this year, and five more planned for the remainder of 2011, plus one side track and one workover.

The company expects to take delivery of the newbuild Super M2 jackup rig in the first half of next year, and it is currently negotiating for a 3,000-hp land rig to support its offshore operations.

Construction of the new Dzheitune (Lam) wellhead platform C is on schedule. The block 1 riser platform, which will act as a gathering station and help increase throughput capacity from the Dzheitune (Lam) West area, has been installed offshore and should be commissioned within the next few weeks.

However, delivery of the Dzhygalybeg (Zhdanov) A platform now looks like being slightly delayed until March 2012.

Dragon has since awarded a contract for construction of the Dzhygalybeg (Zhdanov) B wellhead and production platform. This will be similar to the Dzhygalybeg (Zhdanov) A platform, designed to support either a land or a jackup rig, with accommodation and an initial eight well slots. It will be delivered in 2013.

The company also recently contracted a new riser platform for block 4 to accommodate oil production from the Dzhygalybeg (Zhdanov) field. It plans to tender out contracts for construction and installation of more platforms in both fields.

Presently, Dragon is reviewing ways to increase its crude oil storage capacity at its offshore Central Production Facility. This could include applying for land use and construction of bigger storage tanks.

08/10/2011



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