Kuwait Energy
EL-12-211107
39
US$20.9 MM p.a. fixed OPEX, assumed to remain constant going forward; and
Tariffs of US$2.4/Bbl.
Aside from completing the well currently being drilled, further development activities
envisaged at the present time are limited to some minor facilities upgrades to increase
water handling capacity.
2.3
Block 49
KE holds a 64% working interest in Block 49 and took over operatorship from CC (Oil and
Gas) Company (CC), which holds a 21% interest, in 2010. The remaining 15% is held by
The Yemen Company (TYC), which is a Yemeni state company. TYC’s costs are carried
by KE and CC, so KE’s cost interest in the Block is 75.29%. The license was originally
granted in 1997 and, following extensions, Phase 2 of the exploration period runs until
end June, 2014. There is a commitment to acquire 250-300 km
2
of 3D seismic in the
southern part of the Block.
Nine wells have been drilled on the Block. Two (West Ghobata-1 and Balharak South-1)
produced small amounts of light oil from the Madbi Formation and one (Mintaq-1)
produced CO
2
-rich gas and condensate from the Lam Formation. Balharak South-2 is an
appraisal well drilled by KE in 2011: wireline (MDT) pressure data and samples indicated
the presence of oil in the Lam and Naifa Formations but no oil flow to surface was
obtained. The other five wells were either dry or had minor oil shows. Contingent
Resources are attributed to the three discoveries, none of which has yet been shown to
be commercial, based on estimates of STOIIP and notional recovery factors.
Plans for exploration activity in the Block are discussed in Section 6.5.2.
3.
RESERVES AND CONTINGENT RESOURCES – IRAQ
KE is Operator of the Siba gas field development and Block 9 in Southern Iraq
(Figure 3.1) and also holds an interest in the Mansuriya gas field development in Central
Iraq (Figure 3.2).
Each of Siba and Mansuriya is governed by a Gas Development and Production Service
Contract (GDPSC), awarded in 2011. The terms of the GDPSC are the same for both
fields, apart from the numerical values of the contractor remuneration fee and the plateau
production rate and duration.
