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Production at Shaikan to increase significantly

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Hydrocarbon Engineering,

Today MOL Group has announced that the installation works to connect three wells to the existing production facilities have been completed in the Shaikan block. With the addition of the three new producing wells, total production will increase to 40 000 gross boe/pd.

MOL Group’s partner, Gulf Keystone Petroleum Limited, provided an update on operations at the Shaikan block. In-line with this, MOL Group announces the completion of the installation of the flowlines to connect the Shaikan-7, -8, and -10 wells to the existing production facilities.

The flow-lines are currently being hydro-tested and first oil is expected to flow to the production facilities in December. With the addition of the three new producers, the current total production levels of between 23 000 and 25 000 gross boe/pd will increase to 40 000 gross boe/pd.

An amine plant is currently being tested at PF2 to be followed by the similar plant at P1 in early 2015. The amine plants will sweeten the associated gas stream allowing it to be used as fuel for the production facilities instead of diesel, representing savings of up to US$400 000 per month to the project.

A rig package is moving to a location in the vicinity of Shaikan-10 in order to drill Shaikan-11, an additional producer. An 11 km flowline to tie this well to PF-2 has already been laid.

Shaikan crude oil exports by truck to the Turkish coast continue uninterrupted.

Alexander Dodds, Group Executive Vice President for Upstream commented, “I’m glad to see that production on Shaikan is going to increase significantly achieving our initial gross target of 40 000 boe/pd for the block. This will support us in reaching our production increase target on Group level as well as support the KRG to meet its ambitious export targets. We continue to focus our efforts to achieve volumetric increase in our assets in the Kurdistani Region of Iraq and also work together with the Ministry of Natural Resources in order to monetise production the most efficient way.”

MOL Group has been present in the Kurdistan Region of Iraq since 2007, when its subsidiary MOL Kalegran signed a contract for Akri-Bijeel Block as operator and farmed into Shaikan as minority partner.

Edited from various sources by Joe Green

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