Kuwait Energy
EL-12-211107
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the EDPSC would be extended by the length of the Holding Period; the Contractor may
choose to relinquish the Discovery if a Holding Period is imposed, and recover certain
costs).
There is a minimum gross exploration expenditure obligation of US$90 MM in the first five
years, to include acquisition, processing and interpretation of 866 km of 2D seismic data
or an equivalent amount of 3D seismic data, drilling of an exploration well to a depth of at
least 4,500 m, and performance of detailed geological studies. Details of the Contractor’s
remuneration are given in Section 7.
Block 9 covers an area of 865 km
2
. The eastern boundary and part of the northern
boundary of the block coincide with the international border with Iran. Mines and
unexploded ordinance from the Iran-Iraq war contaminate much of the area and will need
to be cleared. No wells have yet been drilled within the Block and only a sparse 2D
seismic dataset exists (Figure 3.7).
The Yadavaran field was initially thought to be two separate structures named Kushk and
Hosseinieh but is now regarded as a single field. It was discovered in 1999 by well
KSK-1, drilled by the National Iranian Oil Company (NIOC). Four further wells, KSK-2,
HOS-1, HOS-2 and HOS-3, were drilled in 2002-2003. The location of these wells is
shown in Figure 3.7. HOS-3 was found to be water-bearing, even though the well was
drilled within the mapped structural closure.
Rather heavy (20°API), under-saturated, crude oil with high sulphur content (3.8%) was
found at a depth of approximately 9,000 ft (2,750 m) in the Mishrif Formation; production
rates of 600-2,000 bopd were achieved in DSTs. Lighter (34-38°API), waxy, under-
saturated, crude oil with high GOR (1,500-3,500 scf/stb) was found at a depth of just over
13,000 ft (4,000 m) in the Lower Yamama Formation; production rates of 2,000-
5,600 bopd were achieved in DSTs after acid treatment. Both these are carbonate
reservoirs. Light oil was also found at a depth of approximately 12,500 ft (3,800 m) in the
Zubair Formation, but this clastic reservoir appears to be smaller and of poorer quality. A
regional stratigraphic column is shown in Figure 3.2.
STOIIP on the Iranian side of the border is reported to be on the order of 12 BBbl (billion
barrels). According to press reports, Sinopec has made a direct investment of
US$20 billion in Yadavaran and development began in 2012 with an initial production
target of 30,000 bopd. At least seventeen development wells have been drilled, as
shown in Figure 3.7.
