Bond Offering Memorandum 23 July 2014 - page 298

Kuwait Energy
EL-12-211107
35
TABLE 2.1
PRODUCTION STATISTICS, BLOCK 5, YEMEN
Field
Production
Wells
Injection
Wells
1
Oil
Production
Rate (bopd)
Water
Cut (%)
GOR
(scf/stb)
Cumulative
Oil
Production
(MMBbl)
Al Nasr
26
9
24,000
43
440
158.4
Dhahab
19
2
1,500
2
4
5,000
41.6
Halewah
17
2
3,700
10
16,300
41.3
Aser
-
-
-
-
-
0.1
Jannah
1
-
140
-
114,300
3
2.1
Total
63
13
29,340
-
-
243.5
Notes:
1.
Water injection in Al Nasr, gas injection in Dhahab and Halewah.
2.
Production impaired by operational problems: 3,500 bopd in January and early June, 2014.
3.
Condensate yield of 8.8 stb/MMscf.
4.
Rates and ratios are averages for March, 2014; cumulative to end March, 2014.
Al Nasr is an under-saturated oil reservoir that has been developed with water injection
(using produced water from the Block 5 and Block 18 fields). Dhahab and Halewah are
saturated oil reservoirs with gas caps. Produced gas from all three fields is re-injected
into Dhabab and Halewah to maintain reservoir pressure. Oil is exported via a pipeline to
the Alif processing facilities in Block 18 and from there via another pipeline to the coast.
Production from the three main fields is currently limited by gas handling capacity, due to
the rising GOR in Dhahab and Halewah.
The PSA conveys production rights to the Contractor only within the Development Areas
defined around each field (Figure 2.1); the remainder of the original Block 5 has been
relinquished. The PSA expires on 8
th
June, 2015. However, since April, 2011, production
has been interrupted on several occasions because of terrorist activity that closed the
export pipeline to the coast. An extension of the PSA by 541 days, to 2
nd
December,
2016, has therefore been claimed by the Contractor on grounds of “Force Majeure”.
Reserves are reported in Table 0.2 on the basis of this extended licence period.
The original PSA also mentions a possible 5-year extension; however, there have been
two high profile examples in Yemen where similar extensions have been refused,
including the case of Block 18 in 2005. Production associated with this potential 5-year
extension has therefore been reported as Contingent Resources.
Geologically, Block 5 is located in the Sab’atayn Basin. The tectono-stratigraphic history
of this region reflects crustal extension and active rifting in the late Jurassic followed by
late syn-rift salt deposition and subsequent halokinesis. A series of NW-SE to W-E
trending grabens formed the main depocentres for the deep marine sediments of
Kimmeridgian age that would form the prolific, oil-prone source rocks (Meem Formation,
Marib Group) for Blocks 5 and 18. The other key elements of the play are the Tithonian
Alif Formation reservoir sands and the overlying Safer Formation salt seal (Figure 2.3).
The Alif Formation reservoir interval comprises braided fluvial sands divided into the
Lower Alif (approximately 130 ft gross thickness), which is predominantly channel sands
intercalated with silty-shaley over-bank deposits, and the Upper Alif (approximately 200 ft
gross thickness) that tends to be more massive, albeit shaling-out towards the top.
1...,288,289,290,291,292,293,294,295,296,297 299,300,301,302,303,304,305,306,307,308,...567
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