Social-economic development of the Azerbaijan Republic has been boosting in recent years. Reforms are being successfully implemented on basis of the market economy principles. It is a fact that the international community is recognizing Azerbaijan, which is now on the path of dynamic development, as a leading state in the South Caucasus. Fundamental to the today’s successes of our country has been the oil strategy devised by National Leader Heydar Aliyev and implemented successfully by President of our republic Ilham Aliyev.
Ensuring its energy security, as well as a decisive strategic importance in the global energy supply, Azerbaijan has maintained its sustainability in handling oil-gas resources. Fortunately, this hard, responsible, but at the same time honorable task is riding on the shoulders of the hard-working team of Azneft Production Union, one of the leading departments of SOCAR. A broad experience of the Production Union, production capacities, a developed services sector, as well as a valuable scientific and technical potential played an important role in successful implementation of the new oil strategy. Working for the PU are high-skilled engineers, technicians and workers who are capable of dealing with all tasks concerning exploration, development and reconstruction of oil and gas fields both onshore and offshore. Azneft PU has a sizeable share in the oil-gas production which is running all over the country and increasing year by year.
Much work was done in all administrative and structural units of Azneft Production Union during the year.
Over the past 7 months, comprehensive measures were taken to build new facilities and installations, commission them, increase production, carry out renovation of office premises and also improve the working conditions for workers.
Azneft Production Union has developed an action Programme to stabilize and expand production. The major goal of the programme is to prevent reduction of oil-gas production and achieve stabilization of output. The action programme produced successful results and made it possible to fulfill the plan. Thus, Azneft Production Union had produced 3 million 624.6 thousand tonnes of oil condensate and 3.29 billion cubic meters of gas in seven months of 2018. 94.81% and 5.19% of oil production falls to the share of offshore and onshore fields respectively. Offshore and onshore fields account for 98.87% and 1.13% of gas production respectively.
Operations on development of oil-gas fields were performed successfully in accordance with the established tasks and plans. Since the beginning of this year, measures have been taken to stabilize and increase output in exploitation of 28 oil-gas fields (13 of them are located in the sector of the Caspian Sea, 15 are located onshore).
A total of 44 wells were commissioned in 7 months of this year, of which 33 are offshore and 11 are onshore wells. Drilling work was carried out at “Bulla-Deniz”, “Guneshli”, “Chilov”, “Neft Dashlari”, “Garadag”, “Galmaz”, “West Absheron”, “Pirallakhy”, “Sedan” and “Buzovna-Mashtaga” fields. Drilling of new wells resulted in production of 93,026 tonnes of oil condensate and 12 million 52 thousand cubic meters of gas. In general, the plan on production of oil and condensate was fulfilled 108%, and the gas production plan fulfillment made 100%. In addition to drilling, the range of geological work in oil and gas wells also increased. 409 geological activities were carried out. 180,578 tonnes of oil condensate were produced. In the first 7 months of 2018 compared to the corresponding period of 2017, 34 additional geological activities were held which led to production of 44,896 tonnes of oil condensate.
In the first 7 months of 2018, 64 wells were taken from the idling well stock, of which 56,689 tonnes of additional oil were produced. The share of extracted oil in the total production volume makes 1.56%. Apart from this, 44,858 tonnes of oil have been produced this year on basis of new methods, which is equivalent to1.23% of the total volume of the Production Union.
Stable storage and increase of oil-gas production requires acceleration of construction and repair operations. In this regard, construction of new platforms on offshore fields is particularly important. Throughout the year, built were three offshore platforms and one pier area to drill 44 wells at “Guneshli”, “West Absheron” and “Neft Dashlary” fields. One jacket and 1 pier area were built and commissioned to drill 24 wells.
Increase of the range of geological survey operations provides an additional opportunity to get positive results on basis of the analysis of the received data.
In this regard, according to the exploration operations, it is planned to drill an exploratory well #91 (from the offshore platform #12) and an exploratory well #38 (from the offshore platform #7) at Guneshli field. The projected depth of the wells makes 6,250m and 4,150m respectively. The goal of drilling of these wells is to study the lithological characteristics of the reservoir at the sections where the exploration wells are to be drilled, as well as determine the content of oil and gas in the project horizons.
The report on 2D seismic survey work carried out at Sangachal-Deniz-Duvanny-Deniz-Khara-Zira area was prepared. 2D seismic work was also held at the Mugan monocline and Jalilabad layers. Seismo-prospecting work with the OGT method was held for the first time at the area of Alyat-deniz (Baku archipelago). External operations are being performed in accordance with the plan.
In addition, much work was done in order to prevent low pressure gas loss. Thus, 5 electrically powered vacuum compressors were installed at the pier site 418A at Neft Dashlary field in order to collect low pressure gas from the atmosphere.
Apart from this, 8 vacuum compressors used in gas collection systems of Neft Dashlary OGPD were repaired under factory conditions and commissioned.
Repair operations are currently underway in order to ensure sustainability and reliability of gas turbine engines operated at the #2 compressor station located at May 28 OGPD’s area in Neft Dashlary and playing an important role in gas supply of the Republic.
The Department for Management of Gas Storages held technical inspections at the compressor units in order to satisfy the demand for natural gas of the Republic in autumn-winter. Thus, in spite of the planned storage of 878 million 600 thousand cubic meters of gas in storages, the storage volume reached 1 billion 210 thousand 111 cubic meters, which means the fulfillment of the plan by 137.7%.
Azneft Production Union continues implementing successfully the social policy. Considerable work on solution of the social problems of employees, working both in Azneft PU and its enterprises, was done in the first 7 months of this year.
Measures aimed at improving social welfare of Azneft PU’s workers were successfully completed between January and July 2018. Repair and maintenance work was carried out at several facilities to improve social and living conditions of the workers. Accommodations and workspaces of oilmen were provided with up-to-date equipment. Much has been done to improve working conditions on the offshore platforms, piers and coastal production areas.
Matters concerning ecological problems are one of the main priorities of the production union. Azneft PU is also contributing to the implementation of the ecological policy. Thus, in the first 7 months of 2018, wastes emerging at production sites of Azneft PU underwent treatment, conditions were created to clean and implement infrastructure projects at sites, green belts were established and planted trees were watered by means of drip irrigation. During the first 7 months of this year, Azneft Production Union implemented many ecological projects, including cleaning of utilization of formation waters in indoor system, reclamation of land polluted with oil, management of wastes, land improvement, as well as planting of greenery at field areas.
The Production Union is taking consistent measures to ensure and improve healthy and safe working conditions, as well as upgrade production sites within the framework of existing technical safety rules in order to provide safe working conditions there. The shut-off valves the well-head equipment applied in operating wells of deepwater jackets of Guneshli field and Azneft PU’s offshore jackets are connected to a remotely controlled station. An automatic shutdown of valves at well-head equipments and a pressure control system at discharge lines works at such stations in case of emergencies. Automatic fire-detection and fire-fighting systems were installed and commissioned on jackets and at oil processing and delivery points.
Azneft Production Union is constantly focused on use and development of the management system in accordance with international standards. Thus, the productive operation of the SAP system, which is important and provides favorable results in terms of balancing the operation, setting tougher control over financial-accounting operations, bringing forecasting-planning operations to perfection and quick fulfilling of operations, has been launched.
Rejuvenating of the workforce is one of the principles of the modern management. This is also a matter of priority for Azneft PU. Thus, different programs were successfully implemented and positive results were reached. Owing to these programs, young specialists working for Azneft PU get training in modern management techniques.
Year by year Azneft PU is achieving successful figures in the oil-gas production area which is making an important contribution to the economic development of our country. The PU introduces new technologies and production culture.
On September 20, the country’s oilmen are getting ready to meet the Oilmen’s Day with high achievements. At present, they are working at full capacity in order to perform the current tasks of the state plan, make our country prosper and ensure further economic strengthening of our country.
On this occasion, I would like to extend my sincere congratulations to every oilman on this remarkable day, express my best wishes and wish much success for a bright future of our motherland.
