The Povorotnoye gas field in the Crimean Peninsula was discovered in 1985 using Soviet-era drilling methods, where sub-optimal bit types and very basic drilling muds were used. This drilling process was very inefficient and ineffective, resulting in more than 500 days of drilling for each well.

In 2012, Aleator Energy Limited (Aleator) assumed operatorship and contracted Nautec Energy Solutions (Nautec) to provide a step change in drilling techniques for the new well, Povorotnoye-105, which was to be a twin of Povorotnoye-1. The Povorotnoye-1 well produced gas to surface.

The team developed and implemented its project execution plan which resulted in the project’s critical path alignment. Significant savings were achieved through various drilling techniques, competitive contracting strategies, and reduction in planning time.

The Client

Aleator Energy Limited (AWD) is an ASX listed company with headquarters in Perth, Western Australia

Floated in 1996, Aleator is an active participant in oil and gas assets in Crimea

The company also retains mineral royalties in Australia and interests in oil and gas in the Paradox Basin, Utah, USA

Planned production opportunities in Povorotnoye gas field in Crimea in 2015

The Scope

Development of basis of well design, and detailed well design

Well cost estimates, AFE and cost tracking

Technical evaluation and tendering documentation package

Rig selection and drilling contract

HSE bridging documents, emergency response plan and risk management plan

Site construction

Day-to-day management and supervision of drilling operations

The Challenges

Political and financial instability of the country

Expectation of the necessity of a significant cost reduction during the production phase due to the competitive cheap gas supply from Russia

Implementation of modern drilling techniques in the remote location for economical extraction of gas

The Services

In-country survey and initial set up

Drilling engineering services providing a well-designed and fit-for-purpose bit and mud program

Project management including planning, cost management, and reporting

Procurement services including technical specifications, evaluations, award recommendations, rig selection and drilling contract

HSE services to develop emergency response plan, risk identification and mitigation, and HSE bridging documents

Field supervisory and operations management when the well is drilled

The Outcomes

Using advanced well technologies, Nautec was able to deliver the following successful outcomes:

  • Optimised rig contract using the only non-Ukrainian rig available in the country at a competitive price
  • Optimised BOP requirements using a thorough risk analysis and well design
  • Reduction of design and planning time from 8 months down to 4 months
  • Significant savings gained from:
    • Mud and cementing prices compared to initial quotes by tender
    • Completion fluid by using a low SG underbalanced fluid
    • Using heavy wall 3-1/2” tubing rather