Kuwait Energy
EL-12-211107
22
Twelve new development wells are planned comprising two 2015, five in each of 2016
and 2017. All these wells will be drilled in the main part of the field, where they will
produce initially from the Middle/Upper Bahariya, then from the AR-G Dolomite. Since
the Proved case is truncated at the end of the current licence period (2016), only the first
two new wells are included in that case.
Production and accommodation facilities in the field were previously in poor condition but
were substantially replaced and upgraded in 2013, including construction of a new 6-inch
diameter pipeline of 26 km length for oil export from BEA to El Hamra processing station.
Future CAPEX and OPEX estimates profiles have been estimated based on actual costs
incurred in 2011-2013 and budgeted costs for 2014. Key elements include:
US$2.5 MM per well for each new well;
US$0.25 MM for each recompletion; and
US$4.0 MM p.a. fixed OPEX (US$3.25 MM p.a. in the Developed cases) plus
US$2.0 /Bbl variable OPEX.
KE is considering a possible waterflood in the AR-G and Upper and Middle Bahariya in
the main part of the BEA field, but evaluation of the project is at an early stage and
reservoir studies are on-going. Production profiles and costs are not yet defined, so
gross field Contingent Resources have been estimated based on the incremental
recovery factor that might be achieved, estimated at 5%, 15% and 25% in the low, best
and high cases respectively (Table 0.9).
In the Marina block, oil was previously discovered in the Alam El Bueib Formation by the
Marina-1 well, though it produced at only 26 bopd in a test. KE plans to retest the well.
Contingent Resources have been attributed to the structure based on STOIIP and
notional (typical for such fields/formations in the area) recovery factor estimates.
1.2
Abu Sennan
KE holds a 50% WI in Abu Sennan. The other partners are Beach Petroleum (Egypt) Pty
Ltd, holding 22%, and Dover Investments Ltd (Dover), holding 28%. KE carries all of
Dover’s costs, and in return is entitled to receive Dover's share of the cost oil plus 7.5% of
Dover’s share of the profit oil.
Until 29
th
May, 2014, the first of two possible 2-year extensions to the exploration license
covered 1,192 km
2
(after a first relinquishment). KE has now entered into the second 2-
year extension, with a further relinquishment reducing the area to 733 km
2
. Four 20-year
development licenses have been granted in 2012/13 covering the five commercial
discoveries that have been made (Figure 1.4). The development licenses are operated
by a JV between EGPC and the Contractor Group, which is represented by KE, and all
decisions require approval from both parties.
Five wells were drilled in Abu Sennan in the 1980’s. Oil was discovered in AR-G and
Lower Bahariya formations in the ZZ (formerly GP ZZ) field but was not developed.
There was no significant further activity until 2008, when KE acquired, processed and
interpreted 3D seismic data covering most of the license area (Figure 1.4). The GP ZZ-1
and GP ZZ-2 wells were also re-entered and re-tested.
