Bond Offering Memorandum 23 July 2014 - page 372

Kuwait Energy
EL-12-211107
The infield roads seen were all asphalted and in reasonable condition.
The production area at Shukheir NW had a continuous flare, the flame being
located a reasonable distance (60 m) from the existing crude storage tanks. At
the time of the visit, flow lines from the wells to the production area were bundled
at the side of the access road (from about 100 m out) to the production area
without a separating barrier between the vehicles and the lines; but a barrier fence
has subsequently been constructed.
AI.1.3.2 Plant and Equipment
The Area A facilities consisted of remote wellheads and a central gathering facility
for each field. Well stream fluids were being sent via flowlines to the facility
manifolds and then directed to storage tanks, where gas was separated and flared
and any produced water manually drained from the tanks to an evaporation pond.
Oil was being exported from the crude storage tanks to an EGPC processing
facility, where KEE’s responsibility ended.
Yusr Field had 24 producing wells equipped with sucker rod pumps, four two-
phase separators (12,600 bpd total capacity), four gas scrubbers, test tanks
(600 Bbl each), storage tanks (14,400 Bbl total), and four shipping pumps
(6,000 bpd each) for exporting the oil to the EGPC facility. The smaller Kareem
Field (5 producing wells) had local separation (4,700 bpd) and storage (4,200 Bbl)
facilities and two pumps (3,000 bpd each) exporting production to Yusr via
flowlines. Ayun Field (3 producing wells) had no local separation but did have
storage tanks (7,200 Bbl total) and two shipping pumps (3,000 bpd each)
exporting production to Yusr via flowlines
Shukheir Field had three producing wells equipped with sucker rod pumps, three
two-phase separators (23,600 bpd total capacity), three gas scrubbers, storage
tanks (13,200 Bbl total) and four shipping pumps (5,400 bpd each) exporting the
oil to the EGPC facility. Additionally, there were three pumps (5,000 bpd each) for
off-loading production from Shukheir NW into the Shukheir storage tanks.
The Shukheir NW plant (visited by GCA) consisted of a bank of test and
production manifolds, receiving hydrocarbons from eleven wells; a 5,000 bopd test
separator; one 10,000 bopd and one 15,000 bopd production separator; 3 metal
storage tanks (500 Bbl capacity each); water storage tank; portable fire hydrants;
knock-out drum; flare and vent stack; test lab and 2 crude transfer pumps. At the
time of the visit, the field was producing approximately 3,500 bopd and
1,000 bwpd.
The capacity and arrangement of the Shukheir NW plant was adequate for the
service required, though changes being made at the time (new pipeline, new
crude oil storage facility) would make the plant safer and more environmentally
friendly. At the time of the site visit, the crude was exported to Shukheir via trucks
(the one on site at the time of the visit appeared to be in good condition). KE has
subsequently advised GCA that a 6’’ shipping line from Shukheir NW to Shukheir
station was constructed and commissioned in June, 2013. A pumping station
consisting of two pumps with pumping capacities of 10,000 bopd was
commissioned at the same time. This means that all of the trucking operations
have now stopped. Additionally, the storage capacity of Shukheir NW station is
has been increased from 1,500 Bbl to 6,500 Bbl by adding two storage tanks; one
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