Norwegian company IKM Cleandrill has signed a contract for the provision of services on deep-sea drilling technology at Azerbaijan’s Absheron gas field with Total E&P Absheron, acting on behalf of the JOCAP, Joint Operating Company for Absheron Project. The project is technically difficult due to the depth of the water and potentially severe environmental conditions, due to which IKM modernizes its MRR500 system, increasing the pumping capacity to meet these requirements.
The contract will include the installation of IKM’s MRR500 mud recovery system onto a new semisubmersible drilling rig, and provision of subsea drilling fluid pumping services as part of Absheron Project’s drilling campaign in Azerbaijan. SOCAR, the national oil company of Azerbaijan, and Total signed a framework agreement in late 2016 on the main contractual and commercial principles regulating the program for the first phase of development of the Absheron field. The development involves the drilling of one well at a water depth of 450 meters. The extraction will amount to 1.5 billion cubic meters of gas a year, which will fully flow to the domestic market of Azerbaijan, as well as significant amounts of condensate. First gas could be produced as early as in 2019.
Total is expected to make a final investment decision on Absheron until the end of 2017, and the first appraisal well will be drilled at the end of this year. The approximate cost of the first phase is estimated at $1 billion. SOCAR geologists assume that the reserves of the Absheron field amounts to 350 billion cubic meters of gas and 45 million tons of condensate. Total is the operator of Absheron with a 40 percent interest alongside SOCAR (40 percent) and ENGIE (20 percent). Total has been presented in Azerbaijan since 1996, holding a 5 percent interest in BTC Co, owner of the BTC oil pipeline (Baku-Tbilisi-Ceyhan), which connects Baku and the Mediterranean Sea.
IKM Cleandrill AS is a specialist service provider to the offshore drilling industry. The company utilises the latest generation of subsea and surface pumping technologies to manage drilling fluids in support of semi-submersible, drill-ship and jack-up drilling operations. IKM Cleandrill develops proprietary technologies from headquarters in Bergen, Norway, and provides services to clients on a global basis.
