Kuwait Energy
EL-12-211107
32
Possible Reserves are attributed to the remainder of the project (17 further wells), on the
basis of the production profiles generated in the 2008 study (with first incremental oil in
2016).
Future CAPEX and OPEX profiles have been provided by KE, based on historical costs
and forward projections, and include the following key elements:
US$2.0 MM per new well in Yusr;
US$0.15 MM for a work-over and recompletion;
Approximately US$7.5 MM p.a. fixed OPEX, assumed to remain constant in the
absence of further development, plus US$0.9 /Bbl variable OPEX;
CAPEX of US$40.6 MM for the water injection project, of which US$6.6 MM is for
water injection facilities and the remainder is for the 17 additional wells; and
Additional fixed OPEX of US$0.7 MM p.a. for the water injection project.
Table 1.4 shows the breakdown by field of the Reserves attributed to Area A.
TABLE 1.4
FIELD LEVEL BREAKDOWN OF RESERVES, AREA A, EGYPT
AS AT 31
st
MAY, 2014
Field
Gross Field Oil Reserves (MBbl)
Proved
Proved +
Probable
Proved +
Probable +
Possible
Shukheir NW
2,693
4,006
9,417
Yusr
1,134
11,516
18,062
Kareem
27
82
125
Shukheir
16
34
50
Ayun
18
39
54
Total
3,888
15,678
27,708
Notes:
1.
The Reserves shown here are included in the Reserves shown in Table 0.2.
2.
Totals may not exactly equal the sum of the individual entries due to rounding.
Gas produced from Area A is currently flared. The Service Agreement gives the
Contractor no rights to the produced gas. However, GCA understands that KE is
currently evaluating options for monetization of produced gas in Area A and, as part of
this, expects to secure some rights to the gas.
2.
RESERVES AND CONTINGENT RESOURCES – YEMEN
KE holds interests in Blocks 5, 43, 49 and 82 in Yemen (Figure 2.1). Each Block is
covered by a Producing Sharing Agreement or Contact (PSA/PSC), through which the
Contractor derives revenue from oil (and condensate) production in the form of Cost
Recovery and Profit Share. The Contractor has no rights to any gas produced from the
Blocks. For further details on the PSA/PSC terms, see Section 7. No Reserves or
Contingent Resources are attributed to Block 82; the Prospective Resources in that Block
(and Blocks 43 and 49) are discussed in Section 6.5.
