Kuwait Energy
        
        
          EL-12-211107
        
        
          47
        
        
          will rely on the individual suppliers.  All other Long Lead Item orders have been placed
        
        
          with reputable suppliers, and some contracts such as the permanent camp have been
        
        
          placed.
        
        
          The current date for delivery of the gas plant modules is 5
        
        
          th
        
        
          January, 2015 for the first
        
        
          train and 30
        
        
          th
        
        
          March, 2015 for the second train.  The EPC contractor is due to complete
        
        
          Train 1 by mid-July, 2015.
        
        
          While KE believes that the planned schedule is achievable, GCA notes that there is a risk
        
        
          that the first gas production will not be achieved by July, 2015, which is three years after
        
        
          approval of the PDP, although there is no direct financial penalty for missing this
        
        
          particular requirement of the GDPSC.  The gas plant delivery could easily be delayed (in
        
        
          customs or in the factory) and may be delivered incomplete in construction or with pieces
        
        
          missing.  The schedule for construction, hydro-test, mechanical completion, pre-
        
        
          commissioning and commissioning of the plant is reasonable.  GCA notes also that the
        
        
          delays experienced to date mean that the opportunity to reduce subsurface uncertainties
        
        
          before committing to the construction of the processing facilities has largely disappeared.
        
        
          
            3.2
          
        
        
          
            Mansuriya Field
          
        
        
          The Mansuriya gas field is located in eastern central Iraq, approximately 50 km northeast
        
        
          of Baquba in Diyala Province, and 100 km northeast of Baghdad (Figure 3.2).  KE holds a
        
        
          22.5% WI.  The Operator is TPAO, holding a 37.5% WI, and other partners are Korea
        
        
          Gas Corporation (15%) and Midland Oil Company (25%), an Iraqi state company.  The
        
        
          GDPSC has an effective date of 18
        
        
          th
        
        
          July, 2011.
        
        
          The “discovered” reservoirs, which the Contractor Group has the right to develop, include
        
        
          all reservoirs within the contract area and above the base of the Jaddala/Aaliji Formation,
        
        
          defined as 1,790 m ss (5,873 ft ss) in the Mansuriya-1 well and its lateral equivalents.
        
        
          The plateau production rate is fixed at 320 MMscfd of dry gas for a minimum period of
        
        
          13 years.  The minimum work obligation is US$25 MM within the first three years, to
        
        
          include acquisition, processing and interpretation of 150 km
        
        
          2
        
        
          of 3D seismic over the
        
        
          Contract Area, drilling of two appraisal wells, drilling of a “deep” exploration well to the
        
        
          Upper Jurassic Formation, and performance of detailed geological and reservoir
        
        
          engineering studies.
        
        
          The field was discovered in 1979 by the Mansuriya-1 well (Figure 3.5), which found gas in
        
        
          the Miocene-aged Jeribe Formation and the Transition Beds, which is the lowest part of
        
        
          the Fatha Formation (previously known as Lower Fars), at depths of about 3,600 ft ss
        
        
          (1,100 m ss) and 3,100 ft ss (950 m ss) respectively (surface elevation is about 260 ft
        
        
          (80 m)).
        
        
          A second well, Mansuriya-2, was drilled in 1985 on the south-west of the structure, 3 km
        
        
          to the south of Mansuriya-1.  The presence of gas was confirmed in the Jeribe Formation
        
        
          and in the Transition Beds.  A third well, Mansuriya-3, was drilled in 1989 on the north-
        
        
          west of the structure, about 5.2 km north-west of Mansuriya-1, and tested gas in the
        
        
          Jeribe Formation.  Finally, Mansuriya-4, drilled in 1990 on the flank of the structure, found
        
        
          gas and oil in the Transition Beds while the Jeribe was water-bearing.
        
        
          Production tests were conducted on the four wells, achieving gas production rates of
        
        
          between 15.6 and 76.0 MMscfd.  Seven fluid samples from the Jeribe and seven from the
        
        
          Transition Beds have been analysed.  The results are very scattered indicating problems
        
        
          with the sampling and/or analysis procedures.  Measured H
        
        
          2
        
        
          S content varied between