Kuwait Energy
EL-12-211107
25
Construction of two permanent production and processing stations is in progress and is
expected to be completed by September, 2014. The main production station will be for
both El Salmiya and ASA, the other for Al Jahraa. These will replace the current rented
production facilities. Produced oil will continue to be transported by truck, though KE has
reached a deal with Qarun Petroleum Company for handling, processing and transporting
up to 2,000 bopd at a lower fee than it is currently paying to EGPC. Any production
above 2,000 bopd will still pay the higher EGPC tariffs, though GCA understands that KE
is in the process of negotiating a reduction of US$2.2/Bbl.
Additionally, KE has reached an agreement with EGPC to commercialize the gas
produced from the El Salmiya and ZZ fields by constructing a pipeline to transport the gas
to the nearest processing facilities. This will also allow increased oil production which has
hitherto been limited by restrictions on flaring of the associated gas production. The plan
is to have the gas pipeline commissioned by the beginning of October, 2014.
CAPEX and OPEX profiles associated with the development plans have been provided
by KE, and have been audited by GCA. Key elements include:
US$12.0 MM for oil and gas production facilities in the remainder of 2014;
US$5.0 MM per well, including flowline, for each new well, with an additional
US$0.5 MM for a dual completion;
US$0.35 MM for a major work-over and recompletion;
Fixed OPEX of US$5.0 MM p.a. (US$3.6 MM p.a. in Developed case); and
Variable OPEX of US$3.0/Bbl for the first 2,000 bopd and US$8.55/Bbl for the
remainder (prior to the reduction mentioned above, which is not reflected in the
economics presented herein) for processing, handling and transportation.
Table 1.2 shows the breakdown of Reserves by field.
TABLE 1.2
FIELD LEVEL BREAKDOWN OF RESERVES, ABU SENNAN, EGYPT,
AS AT 31
st
MAY, 2014
Field
Gross Field Oil Reserves (MBbl)
Gross Field Gas Reserves (Bscf)
Proved
Proved +
Probable
Proved +
Probable +
Possible
Proved
Proved +
Probable
Proved +
Probable +
Possible
ZZ
2
8
11
0.0
0.3
0.6
Al Jahraa
17
1,203
3,048
0.0
0.0
0.0
El Salmiya
142
3,323
8,247
0.0
8.1
26.6
ASA
24
399
2,118
0.0
0.0
0.0
Total
185
4,933
13,424
0.0
8.4
27.2
Notes:
1.
The Reserves shown here are included in the Reserves shown in Tables 0.2 and 0.4.
2.
Totals may not exactly equal the sum of the individual entries due to rounding.
