Kuwait Energy
EL-12-211107
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TABLE 7.3
OIL AND GAS PRICE SCENARIO, SIBA AND MANSURIYA FIELDS, IRAQ
Year
Brent Crude
(US$/Bbl)
SOMO OSP
(US$/Bbl or
US$/boe)
Effective Prices
Condensate
(US$/Bbl)
Gas (US$/Mscf)
2014 (Remainder)
106.55
100.69
100.69
16.78
2015
102.38
96.75
96.75
16.12
2016
98.24
92.84
92.84
15.47
2017
95.48
90.22
90.22
15.04
2018
96.45
91.14
91.14
15.19
2019
99.37
93.90
93.90
15.65
2020+
+2% p.a.
+2% p.a.
+2% p.a.
+2% p.a.
7.2
Costs
Estimates of CAPEX and OPEX have been provided by KE in the form of budgets, plans,
historical costs and forecast costs, and audited by GCA, as described in the appropriate
sections of this report.
Costs have been escalated at 2% p.a. from 2015 onwards, except that for Area A in
Egypt, the GPC Facility Tariff and the Baseline Production OPEX Reimbursement are
held constant, and for Abu Sennan in Egypt, the variable OPEX (transportation and
processing) for production above 2,000 bopd is escalated at 10% p.a. from 2015 onwards
based on the contract with GPC.
KE will be liable for abandonment costs in Area A in Egypt, but these are expected to be
small and have not been included.
7.3
Contract and Fiscal Terms
7.3.1 Egypt
The relevant elements of the Egyptian fiscal regime for petroleum operations as
they currently stand, together with the applicable PSC and Service Contract terms,
as they pertain to each asset, are summarised below and are assumed to remain
constant going forward:
Cost Recovery Limit:
o
Abu Sennan: 30% of Gross Production with any unused cost recovery
going fully to EGPC;
o
Burg El Arab and ERQ: 35% of Gross Production with any unused
cost recovery going into the Profit Split pool; and
o
Area A: no cost recovery provision.
Cost Recovery Depreciation: exploration and development costs to be
recovered at a rate of 20% p.a. for Abu Sennan and Burg El Arab, and
25% p.a. for ERQ. Operating cost may be recovered in the year incurred,
subject to there being sufficient Cost Oil. Unrecovered costs can be carried
forward until fully recovered. For the purpose of these assessments the
