Parker Drilling-Saipem JV snags Karachaganak contract

The Karachaganak Petroleum Operation BV consortium this week awarded a three-year drilling contract to Tulsa-based Parker Drilling Co. and joint venture partner Saipem SPA of Italy. Under the contract, Parker and Saipem will provide five of six rigs and conduct work for Karachaganak Integrated Organization on the Karachaganak development project near Aksai, western Kazakhstan.


Karachaganak Petroleum Operation BV of Kazakhstan this week awarded a three-year drilling contract to Tulsa-based Parker Drilling Co. and joint venture partner Saipem SPA of Italy. Under the contract, Parker and Saipem will provide five rigs and conduct work for Karachaganak Integrated Organization on the Karachaganak development project near Aksai, western Kazakhstan.

Parker and Saipem have formed a joint venture company named SaiPar Drilling Co. to conduct the work. A technical alliance and subcontract have been agreed on with Kazakhoil Drilling, a subsidiary of Kazakhoil, to provide a sixth rig.

Operations are set to begin in December on the contract, which has three 1-year options. The rig mix will include three drilling and three workover rigs. The project will include workover, recompletion, and new development drilling.

Discovered in 1979, the Karachaganak oil, gas, and condensate field is located in the Burlinsky District I in northwestern Kazakhstan. The nearest towns are Uralsk, Kazakhstan, and Orenburg, Russia, at 74 miles and 174 miles from the field, respectively. A company base for SaiPar will be established in Aksai, about 18 miles from the field.

Limited production from the field began in 1984. To date, more than 250 wells have been drilled there, including exploration, appraisal, production, and observation wells.

Partners in the Karachaganak project are BG PLC (32.5%), Agip SPA (32.5%), Texaco Inc. (20%), and Lukoil (15%). The group signed a 40-year PSA with Kazakhstan in 1997.

Karachaganak proven reserves are 1.2 billion tonnes of oil and condensate and 1.35 billion cu m of gas. Production is forecast at 80,000 boe/d this year, vs. 66,000 boe/d last year.

More in Drilling Operations