Project Profile
Location: Basra, south-east Iraq
Area: 900 km²
Start-up: late 2016
Target: 250,000 bpd by 2025
Kuwait Energy will be the operator of the block with a 70% working interest, while Dragon Oil holds the 20% and Egyptian General Petroleum Corporation (EGPC) the remaining 10% interest (bought in March 2015).
The consortium spudded the first exploration well in March 2014. On September 10, 2014, they announved the first oil discovery at Block 9. The successful discovery was at the consortium\'s first target, the Mishrif formation at 2,700 metres, in exploration well, ‘Faihaa-1’.
Preliminary tests of the Faihaa-1 Mishrif formation resulted in a flow rate of circa 2,000 bpd and 3,400 bpd of 20 API oil on 32\"/64\" and 64\"/64\" chokes, respectively.
Later in the year, in December, the partners reported their second oil section discovery in the second target, the Yamama formation, reached at 4,000 meters in the same Faihaa-1 exploration well. Preliminary open hole tests of the Faihaa-1 Yamama formation resulted in oil flow rates of c. 5,000 and 8,000 bopd of 35 API crude oil on 32”/64” and 64”/64” chokes, respectively.
The report from an independent petroleum engineer incorporating the results of testing the Mishrif formation indicated contingent 2C oil resources of 198 million barrels and contingent 2C gas resources of 56 Bscf net to Dragon Oil on a working interest basis.
The consortium commenced oil production from Faihaa-1 well in 2015. Production began from the Faihaa-1 well in the order of 5,000 bopd on 32\"/64\" choke.
Commercial oil production at the Faihaa-2 well started with stabilised rate at 5,600 bpd. (October, 2016)
Production is targeted to reach a 10-year plateau of 250,000 bpd by 2025. Under the early production programme, output is envisaged reaching 30,000 by the end of 2018.
A full-field development plan would then be submitted to the authorities the following year, which would result in the signature of a 20-year development licence and work to raise production first to 125,000 bpd by 2022 and then to double that volume three years later.
Operators:
Kuwait Energy: Operator with 60% interest
Dragon Oil: 30% interest
Egyptian General Petroleum Corporation (EGPC): 10% interest