Kuwait Energy
EL-12-211107
38
Fixed OPEX of US$63.0 MM in 2014 (adjusted pro-rata for the period June-
December) falling to US$60.0 MM in 2015 and US$55.0 MM p.a. thereafter; and
Variable OPEX of US$3.0/Bbl.
Contingent Resources are additionally attributed to condensate potentially recoverable
from East Halewah. As its name suggests, this lies adjacent to the Halewah field and is a
down-thrown fault block where gas condensate was discovered in 2005. A 4-5 well
development project tied in to the existing facilities has been under consideration for
some time, but has been delayed by the lack of spare gas handling capacity. It now
seems unlikely to go ahead unless the 5-year extension of the PSA is granted.
2.2
Block 43: Nabrajah Field
KE holds a 28.33% participating interest in Block 43. The Operator is DNO Yemen AS
(DNO), holding a 56.67% participating interest, while the remaining 15% is carried on
behalf of The Yemen Company (TYC) by KE and DNO in proportion to their participating
interests. The development license runs until April, 2025.
The Block lies in the Say’un-Masila Basin, where there are more than 20 developed oil
fields centred in the Masila area (Block 14, just to the west of Block 43). The only
producing field in Block 43 is Nabrajah, which was discovered in 2004 with the Nab-1
well. Commercial production began in July, 2005 from two wells. A total of 21 wells have
been drilled in the Nabrajah field, including two horizontal wells drilled in 2012.
Production comes from two separate reservoirs: the Qishn sandstones, where five
production and four water injection wells were active in the first half of 2014, and the
Deep reservoir, with one active production well (Nab-5) and one gas injection well.
An additional development well was drilled in late 2013/early 2014, targeting the Deep
reservoir, but encountered oil shows only and will not be put into production. Production
was temporarily shut in at the beginning of February, 2014, due to lack of operations
support services caused by the security situation in the south of Yemen, but has
subsequently resumed.
Average gross field oil production rate for the month of April, 2014 was approximately
1,440 bopd at a water cut of 98% and a GOR of 11.2 Mscf/Bbl. Cumulative oil production
to end April, 2013 is 13.7 MMBbl, of which 4.3 MMBbl is from the Deep reservoir.
All wells in Nabrajah (except Nab-5) produce from the Lower Cretaceous Qishn
sandstones at a depth of approximately 4,900 ft ss (1,500 m ss). Nab-5 produces from
the fractured Jurassic Basement rocks and the overlying, Late Jurassic (Oxfordian),
Shuqra platform dolomite (together referred to as the Deep reservoir) at depths of up to
6,560 ft ss (2,000 m ss). The dolomite is also fractured and has Karst features. Although
Nab-5 has been a very successful well (initially producing more than 5,000 bopd),
subsequent wells drilled to the dolomite have failed to produce any significant quantity of
oil.
The Operator’s latest estimates of STOIIP (which have not been audited by GCA) are
17.8 MMBbl in the Qishn reservoir and 27.4 MMBbl in the Shuqra reservoir. Based on
these estimates, the recovery factor at end April, 2014 is approximately 52.5% in the
Qishn reservoir and 15.7% in the Shuqra reservoir.
Low, best and high future oil production profiles have been estimated using decline curve
analysis. Future OPEX profiles have been estimated based on information supplied by
the Operator:
