ECONOMY
PROLONGATION THE PROGRAMME ON WESTERN AZERI WILL BECAME KNOWN AT THE BEGINNING OF 2004
The pre-drilling programme on western Azeri started in June 2003 and envisaged the pre-drilling of 10 wells to project depths ranging between 3100 to 4500 meters. However in the course of drilling problems cropped up leading to the deformation of the well at the depth of 475 meters. Before the problem emerged, one well had been pre-drilled to over 3000 meters with drilling work on six others reaching 600 meters and three others to 300 meters.
Mr Woodward explained that geo-technical research work was done to find out the cause of the destruction. Now the data collected is being assessed along with discussions of further plan of action. Mr Woodward explained that they had to determine whether they could continue drilling at the same site from the already installed base template or they will have to install another base template at another location. In any case this problem will not reflect on the time schedule for oil production from western Azeri.
Head of company said that before a final decision is made on pre-drilling in Western Azeri a decision has been taken to start pre-drilling work on the eastern part of Azeri. In December a base template will be installed here from where five wells will be pre-drilled. Work will continue to the end of 2004 and then the drill rig Dede Gorgud will return to Western Azeri to continue its work.
The pre-drilling programme has been designed to speed up the process of oil production after the construction of the production platforms and is done from the site where the production platform will be installed.
Development of the western and eastern part of the Azeri deposit falls under the Phase-2 development programme for Azeri. Phase-2 envisages the construction of two platforms for 48 wells each in the western and eastern parts of Azeri.
Start of oil production from western Azeri is scheduled for the second quarter of 2006 with production from eastern Azeri - in the first quarter of 2007. It is expected that the two platforms will yield over 20 million tonnes per year (420 thousand barrels per day). During the Phase-2 a total of 210 million tonnes (1.6 billion barrels of oil) expect to be lifted. The Phase 2 costs USD5.2 billion.