New drilling rig required for Absheron field
By Aynur Jafarova
Azerbaijan will need a new drilling rig in 2017 to get the first gas from the Absheron gas condensate field in the Azerbaijani sector of the Caspian Sea, a source on the oil and gas market told Trend news agency on December 7.
"Gas production within the indicated period will require the necessary drilling operations, as well as creating all necessary mining infrastructures," the source said. "The main issue in the Absheron field development is the free floating drilling rig."
In June, Caspian Drilling Company and Singapore's Keppel Offshore & Marine Ltd signed an agreement to build a new rig for works in the Caspian Sea. The cost of the new floating drilling rig together with taxes is slightly over $1 billion.
Therefore, a new drilling rig is required to develop the Absheron field.
The source went on to note that the new drilling rig can be constructed in case it is fully or partially financed by the French Total, while the operator of the new rig can be the Caspian Drilling Company.
The company will return Total's funds by reducing its daily expenses for using the rig. Azerbaijan will own the rig as refunds to Total.
"This will significantly reduce the platform operating expenses, which will be beneficial for the company," the source said.
Given the plans for obtaining the first gas from the Absheron field, all issues should be resolved in 2014. The construction of the platform that will serve the field may be launched in late 2014, the source said.
Discovery of Absheron large natural gas field in the Azerbaijani sector of the Caspian was announced in September 2011 following the drilling of an exploration well.
The field potential reserves amount to 350 billion cubic meters of gas and 45 million tons of condensate.
Participants of the Absheron project include SOCAR with a share of 40 percent, French companies Total with 40 percent and Gaz De France Suez with 20 percent.
The contract on the field was signed on February 27, 2009 between SOCAR and Total. Later, Total sold 20 percent equity participation to Gaz De France Suez.
The resource-rich South Caucasus republic with proven gas reserves of 2.2 trillion cubic meters is targeting to double its natural gas output to some 54 billion cubic meters a year by 2020.
Azerbaijan aims to meet its potential demand for drilling rigs.
Currently Azerbaijan has three drilling rigs - the Heydar Aliyev rig, the Istiqlal rig and the Dada Gorgud rig - which are involved in the development of Azeri-Chirag-Gunashli block of oil and gas fields and Shah Deniz gas condensate field.
SOCAR plans to build four floating drilling rigs in the next seven years at a total cost of $4 billion. The rigs will have a capacity to drill for oil and natural gas in the Caspian Sea at a depth of 1,000 meters.