Ramco Sets Casing on First Azeri Onshore Well

The Aberdeen-based operating company Ramco Energy PLC has set casing on Muradkhani Field's first new well. Ramco holds a PSA with the State Oil Company of the Azerbaijan Republic (SOCAR) for the rehabilitation, development, and further exploration of the Muradkhanli contract area containing the field by the same name, which may well be the country's largest onshore oilfield.

The well, MOC-01, reached its final depth of 4,567 meters at the end of March. The field, which is believed to contain as much as 5 billion bbl of oil (450 million recoverable bbl), was discovered in 1969 and produced almost 20 million bbl through 1997, but was shut-in until Ramco drilled this appraisal well in January. It had 43 producing wells, but some 18 other wells had been suspended and another 50 abandoned. Ramco's analysis of the diminished production attributes it to inappropriate drilling and completion techniques.

Under the terms of the PSA, Ramco holds a 50% interest, with an affiliate of SOCAR holding the remaining 50%. The PSA covers the entire 565 sq km Muradkhanli Block, which lies in the Kura Basin some 200 km southwest of Baku and straddles the Kura River. The southern portion, the Rehabilitation Area, approximately three quarters of the total PSA area, includes the Muradkhanli, Jafarli and Zardab Fields and the Shikhbagi oil discoveries—all in the Middle Eocene and the new play zone in the Upper Eocene.

Ramco has an obligation to increase production by 50% over 1997 average levels of 800 b/d, within two years of approval by SOCAR of the work program. It will carry SOCAR until production has reached twice the 1997 average for four consecutive quarters. In the northern part of the PSA,, the Exploration Area, Ramco is obliged to acquire 3D seismic and drill two exploration wells within three years. SOCAR will be carried until commercial production is established from this area.

Edited by Dev George