Project Profile
CAPEX: US$153 million (infrastructure, drilling and exploration assets)
Location: Cheleken block, Caspian Sea
Average field production: 73,600 bpd (2013)
Water Depth: 30m
Start-up Year: 2015
The Cheleken Contract Area is located in the eastern section of the Caspian Sea, offshore Turkmenistan, west of the coastal town of Hazar. The Cheleken Contract Area covers approximately 950 square kilometres (235,000 acres) and comprises two offshore oil and gas fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov), in water depths of between 8 and 42 metres. The fields comprise two elongate anticlines situated at the eastern end of the Aspheron Ridge. The Aspheron Ridge is a prolific hydrocarbon play extending from the Apsheron Peninsula in Azerbaijan to the Cheleken Peninsula in Turkmenistan and divides the South Caspian Basin from the Middle Caspian Basin. The 3-D seismic survey was acquired in 2004/2005; the interpretation was completed, while continuous additional studies and refinement are ongoing.
Dragon Oil’s operational focus is the re-development of the Dzheitune (Lam) and Dzhygalybeg (Zhdanov) fields that were discovered during the Soviet era in Turkmenistan. Dragon Oil holds a 100% interest in and is operator of the Production Sharing Agreement (PSA) for the Cheleken Contract Area. Development in the Cheleken Contract Area under the PSA commenced in May 2000.
The group is producing from a significant number of new and old wells and has an aggressive development programme comprising drilling new wells and an ongoing workover programme. The average daily Gross Field Production has increased from approximately 7,000 bopd in 2000 to over 57,000 bopd at the turn of 2010-11.
Dzheitune (LAM)
The Lam Field is located to the South-West of Zhdanov field. Since the commencement of the Production Sharing Agreement (PSA) in 2000, Dragon Oil has drilled 53 new wells on the Lam field as of 29 March 2011, constructed and installed two new platforms with plans to install one more platform in late 2011, refurbished and upgraded existing platforms and performed many successful workovers.
First well drilled in 1967
First production in 1978
A significant number of old and new wells in production
Nine producing platforms.
Dzhygalybeg (Zhdanov)
The Zhdanov Field is located to the North-East of the Lam field. The initial exploration and prospecting of the Zhdanov structure began in 1965. The first well with commercial oil and gas was drilled in 1966. The field has produced oil and gas from a series of numerous, stacked early to middle Pliocene Red Series sandstone reservoirs. Dragon Oil has completed a number of successful workovers in the Zhdanov Field and plans to install its first new platform, Zhdanov A, in early 2012.
First well drilled in 1966
First production 1972
Three old wells still producing.
Operator:
Dragon Oil: Operator with 100% interest
Contractors:
Caspian Energy Projects LLC: Construction of new platform to support support a land rig and a jackup rig
Eurasia Drilling company: Lease and management of the two LeTourneau S116E jack-up rigs, Neptune and Mercury
ILK Insaat Taah: Jackup rig
Naftna Industrija Srbije (NIS) Naftagas: Lease of drilling rig
Petro Gas FZE: EPC - 39.4km pipeline
Yantai Raffles Shipyard Co Ltd.: New built Super M2 jack up rig