Major events in Caspian countries' oil and gas industry for last week (May 18-22)

Analysis Materials 25 May 2015 17:41 (UTC +04:00)

Turkey, Azerbaijan negotiating on oil and gas exploration

Turkey has started talks with Azerbaijan in the sphere of exploration of oil and gas, Turkish Petroleum Corporation (TPAO) said.

The sides have held the first round of the negotiations on this issue, said TPAO.

"It is too early to talk about where the work on oil and gas exploration will be carried out, since the negotiations haven't been completed yet," said the corporation.

New wells drilled within Shah Deniz Stage 2 project

Nine wells have been drilled within the pre-drilling of the second stage of the development of the Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea, a source on the oil and gas market of Azerbaijan said.

"Work on the drilling of SDC-04 well, the projected depth of which exceeds 6,000 meters, as well as the third section of the SDC-02 well has been completed," said the source.

So, nine wells have been already drilled within the pre-drilling of the Shah Deniz-2 project, and after the completion of work on the well SDD-04, the number of wells drilled will reach 10, according to the source.

Azerbaijan to use special equipment for high pressure drilling in Caspian Sea

Azerbaijan will become one of the first countries to apply special equipment for high pressure drilling on the prospective structures in the Caspian Sea, said the message posted on the Rigzone portal.

The message said that "Caspian Drilling Company" (CDC), in which 92.44 percent of the equity is owned by SOCAR (State Oil Company of Azerbaijan) will become one of the first companies in the world, which will carry out drilling work from the floating rig of the new generation, equipped with a blow out preventor (BOP), which allows to drill at a pressure of 138 MPa.

"Construction of a new drilling rig goes according to schedule," said the message. "As of late March, about 70 percent of the units and the lower part of the case of the rig have been assembled. Parts of the rigs are built in different locations, but final assembly will be carried out at the Caspian Shipyard plant. Commissioning of the drilling rig is planned for December 2016."

Iran plans to expand oil exploration in Caspian Sea

Iran plans to expand oil exploration operations in the Caspian Sea, an informed source told Fars news agency.

In a bid to discover new oil and gas deposits in the Caspian Sea, other than the previously discovered Sardar-e Jangal field, Iran has started exploration operations at a hydrocarbon block, named Block 8-1, in the sea, the source added.

An exploratory well will be drilled to a total depth of 5,000 meters, compared to two wells that have been drilled to total depths of 2500 meters and 3000 meters in the Sardar-e Jangal field.

Company for preparation of TAPI feasibility study defined

The British company Penspen prepares a feasibility study for TAPI (Turkmenistan-Afghanistan-Pakistan-India) within the framework of the contract obtained, the message of the Ministry of Petroleum and Mineral Resources of Turkmenistan said.

Penspen received a contract from the Asian Development Bank (ADB) to perform a feasibility study for the construction of a gas pipeline 1,820 km long, with a 56 inch diameter of pipe, according to the information. The pipe communication will start from the giant gas field of Turkmenistan "Galkynysh" to provide gas markets of Afghanistan, Pakistan and India.

The scope of work of the Penspen company includes a review of the proposed route, confirmation of hydraulic characteristics, including the size and location of the compressor station, providing calculations.

The project cost of TAPI is $10 billion, according to the latest data.

Earlier, the project cost was estimated at $7.5 billion.