Vladimir Shlimak: “Azerbaijani experts feel at home in Israel”

Interview by Peter Lyukimson, Israel. Exclusively to Vestnik Kavkaza

In September, leading business periodicals reported that the search for oil in the Israeli shelf section Yam 3 in 15 km to the West from Ashdod was coming to an end. The section can contain a field of high-quality oil – from 80 to 120 million barrels. The crucial role in exploration of the field is played by the Azeri company Caspian Drilling Company. The head of its branch in Israel, Vladimir Shlimak, told Vestnik Kavkaza about the prospects of oil exploration on the Israeli shelf.

-          Why did the Caspian Drilling Company come to Israel?

-          I graduated from Azineftekhim. At first I worked in Baku, in the Sea Department of Exploration Drilling from Special Technical Facilities. It was the most progressive sea oil exploration department in the USSR. In 1991 I moved with my family to Israel and worked in private oil exploration companies and in the Israeli state water supply company Mekort. I also worked in Kazakhstan for some time; since 1999 I live and work in Houston. But I maintained contacts with Israel. Several years ago I found out that Israel changed laws on sea oil and gas exploration. Previously any investor could invest money, hire specialists and begin drilling. But according to new rules, to receive a license on sea oil exploration, a company or a group of companies should have a professional operator who should have certain experience and so on.

By the time I had already been the head of the branch of Caspian Drilling Company in the U.S., and I proposed the company to make a statement at the Israeli market. At the same time, the main role in the initiative belongs to the director of our company Farid Akhundov.

-          So your so-called return to Azerbaijan happened long before Caspian Frilling began to work in Israel?

-          Moreover, in a way I came back to the company where I began to work after my graduation from the university. Caspian Drilling was founded on the basis of the Exploration Drilling Department. At first Caspian Drilling was a joint company of SOCAR and Santa Fe. Then, SOCAR purchased about 93% of Caspian Drilling. In 2010 right after finding first Israeli fields, it was decided that Caspian Drilling should enter the Israeli market and be involved into oil exploration. Of course the decision was agreed with SOCAR. A big role was played by the fact that Azerbaijan and Israel have very close relations. Caspian Drilling’s share in the project is 10%.

-          Was it a risky decision from the economic point of view?

-          No major oil field has been found near Israel yet, and we are involved into the searches. 20 years ago the company headed by Armand Hammer Occidental Petroleum conducted drilling near Ashdod where we are working now. They found oil there, but they couldn’t test the well and find out whether it could be a beneficial project. Their equipment failed to deal with technical difficulties. But Caspian Drilling has both necessary equipment and experience of work with so high temperatures and pressure. That’s why we decided to be involved into the project to find out whether the field is profitable or not.

-          Does it mean you are an executor?

-          We are operators. The right for oil exploration and drilling was given to the Israeli company Shemen Oil and Gas Resources, as they signed a contract with us. By that time we had already been recognized by the Ministry of Energy of Israel as an official operator which had sufficient experience and qualification for organization and conducting oil exploration. Later we held a contest on providing certain types of services; anyway we will be their operators and supervisors. Azerbaijani experts work in our office, on the platform, in the Ashdod port and control all stages of implementation of the project.

-          Are they living in Israel as well as working?

-          It is a normal practice for oil exploration to use the rotating scheme: four weeks they spend at sea or in office, and four weeks – at home. I would like to note that they are high-class experts who got experience in the best oil companies in the world.

-          What is the current stage of the project?

-          It is coming to an end. We have completed drilling and reached 5700 m of depth; we conducted geophysical studies in the well. Now we prepare for testing the well. All our data confirm that there is oil in the region. However, it is difficult to predict volumes.

-          When will it be possible to predict them?

-          After testing the well, we will get information on debits and quality of oil and can roughly say what oil is it and what volumes of it are there.

I think we will end testing in late October. It will take a month or a bit more to process the data.

-          Are there any other projects in Israel in which Caspian Drilling is taking part?

-          For sure. We participate in the license of Oz, it is gas exploration in 60-70 km from the Israeli shore, but in the north part of the country – in front of Netanya. Our share in the project is 5%. But this project is at the initial stage at the moment.

-          And the last question is, how do Azerbaijani experts working in Israel feel in Israel?

-          They feel very well. They are at home. Probably certain similarity of mentalities of the countries plays a positive role. Some of them are in love with Israel. When Ashdod was shot from the territory of Gaza, no Azerbaijani left the country. They continued working because they thought they should share Israel’s fate. It mean a lot.