Page 8 - MEOG Week 44

MEOG PerFormanCe MEOG
UAE announces increase in reserves
uae
aBu dhabi’s Supreme Petroleum Council (SPC) said this week that the uaE’s crude oil reserves had increased by 7bn barrels and 57 trillion cubic feet (1.61bn cubic metres), respectively.
The addition brings total Emirati oil reserves to 105bn barrels and gas reserves to 273 tcf (77 bcm), moving it into above Kuwait and into sixth place globally.
Current oil and gas production average around 3mn barrels per day of crude and 10.5 bcm per year of gas, while adNOC has a long- term crude production goal of 4mn bpd by 2020 and to 5mn bpd by 2030. Capacity is currently understood to be in excess of 3.5mn bpd.
Crude listing
during the same press conference, the SPC said that it had taken the “historic decision” to list Murban crude oil on “an exchange” in the future.
Crown Prince Sheikh Mohamed bin Zayed said on his Twitter account that the announce- ments would help to strengthen “abu dhabi’s position as a global energy player”. He added that listing the crude would “enable our custom- ers and other market participants to better price, manage and trade their purchases of Murban”.
While the specific exchange was not men- tioned, Reuters reported recently that adNOC had selected the Intercontinental Exchange (ICE) to launch a regional oil benchmark based on Murban crude grade by 2020, noting that this may occur before February next year.
The media outlet had previously reported that adNOC was considering announcing the Murban benchmark plan by November, adding that it was in talks with a number of exchanges including ICE and the Chicago Mercantile Exchange (CME).™
Genel provides update, prepares to drill
kurdIstan
LONdON-LISTEd Genel Energy provided an operational update last week showing stability from existing operations in Kurdistan while the company prepares to drill a new target in early 2020.
Genel said that it had been notified by Tawke licenceoperatordNOthatproductionfromthe acreage would average around 120,000 barrels per day at the end of 2019 and remain at that level into next year. Output had been running at 119,800 bpd over the quarter ending in Septem- ber, with production reduced because of a work- over of the P-2 well and side-track of the P-3 well at the Peshkabir field.
Genel has a 25% stake in Tawke.
The firm’s announcement noted that net pro- duction had averaged 36,530 bpd during the first nine months of 2019, up 12% year on year and “in line with guidance”.
dNO added that the Peshkabir-to-Tawke gas project was on schedule for the first quarter of 2020. This will effectively eliminate gas flaring while enhancing recoverability.
The Tawke-57a deep well, which was drilled to appraise the Jurassic layer, commenced in august and testing is due to commence shortly.
Meanwhile, the Tawke-59 Cretaceous well was spudded in October and is expected to start production later in November, with two Jeribe wells, Tawke-61 and Tawke-62 also set to be brought into production soon. Genel added that four additional Jeribe wells were planned to spud by the end of the year.
The Taq Taq field, which is located in central Kurdistan was once the firm’s and the territory’s flagship asset, producing more than 100,000 bpd only four years ago. after swingeing reserves
downgrades and a rapidly increasing water cut, output by q4 2018 had slumped to a mere 11,640 bpd. Output from Taq Taq averaged 10,870 bpd in q3, down from 12,200 bpd in the same period last year, but Genel said that the successful com- pletion of the TT-19 well had increased produc- tionto“justunder11,000bpd”.
In late October, it announced that it had signed a contract with Parker drilling to drill the qd-2 well on the qara dagh field in which it holds a 40% operated working interest. drilling is due to take place in the first half of 2020.
The company has estimated unrisked gross mean resources at qara dagh at around 200mn barrels. The qd-2 well follows the completion of qd-1, 10km to the south-east, where sweet, light oil was discovered.
Meanwhile, civil construction work at the Sarta field was completed on schedule in Octo- ber, and work on the construction of the 20,000 bpd central processing facility (CPF) has now begun. The commissioning of the CPF and pro- duction are anticipated to occur in mid-2020, with Phase 1a targeting 34mn barrels of 2P gross reserves in the Mus-adaiyah reservoirs.
Overall unrisked gross P50 resources are currently estimated by Genel at around 500mn barrels. The firm owns a 30% working interest in Sarta. Genel also noted that it intended to begin a farm-out campaign in q1 2020 for its Sidi Moussa block offshore Morocco.
The firm ended 2018 in a net cash position of $37mn and promised to pay a maiden divi- dend this year. This came despite the company falling to an annual pre-tax loss of $284.4mn on the back of the impairment of the Miran gas field in central Kurdistan.™
P8
w w w . N E W S B A S E . c o m Week 44 05•November•2019