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BP to use additional drilling rig on Shah Deniz in 2012

Oil&Gas Materials 28 December 2011 20:46 (UTC +04:00)

Azerbaijan, Baku, Dec. 28 / Trend E.Ismayilov/

By late 2012, British BP may use a semi-submersible Heydar Aliyev drilling rig within the second stage of the development of gas condensate "Shah Deniz" field in the Azerbaijani sector of the Caspian Sea, a source on the oil and gas market told Trend today.

The source said that much work was conducted within the second stage. It is necessary to use the additional drilling rig.

"The launch of the operations will depend on the completion of contractual obligations within the drilling of the exploration well on the "Absheron" field," a source said. "Probably, the rig will start working on "Shah Deniz" by late 2011."

Earlier, the parties signed a medium-term contract that provides drilling operations in the framework of contracts implemented by BP in Azerbaijan. Most of the work will be on pre-drilling under the second stage of Shah Deniz field development.

Insufficient number of drilling rig impedes drilling a large number of wells that are provided within the framework of Shah Deniz full field development. So, BP is keen to engage the Heydar Aliyev drilling rig. Under the Shah Deniz full field development two offshore platforms will be installed and 26 underwater wells will be drilled.

Peak production is forecasted at over 8.6-9 billion cubic meters. It is planned that in the second stage of field development, gas production can be brought up to 24 billion cubic meters a year.

The Shah Deniz field's gas reserves are estimated at 1.2 billion cubic meters, while condensate - 240 million tons.

The contract to develop the offshore Shah Deniz field was signed June 4, 1996. Participants to the agreement are: BP (operator) - 25.5 percent, Statoil - 25.5 percent, NICO - 10 percent, Total - 10 percent, LukAgip - 10 percent, TPAO - 9 percent, SOCAR-10 percent.

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