Page 7 - MEOG Week 04 2021

MEOG PERFORMANCE MEOG

Kurdistan operators receive

December payments

KURDISTAN CANADA’S ShaMaran Petroleum and Lon- Atrush
don-listed Gulf Keystone Petroleum (GKP) this While ShaMaran is yet to provide its Q4
week announced that they had received payment update, the company’s 2020 production guid-
for December crude sales from the Kurdistan ance for Atrush of 44,000-50,000 bpd remains
Region of northern Iraq. unchanged, with the field having produced at an
The news follows company updates from average of 46,504 barrels per day (bpd) through
operators of assets throughout the semi-auton- the first nine months.
omous region that struck a positive tone on the The Atrush partners have installed produc-
back of improved reliability and transparency tion facilities with a capacity in excess of 50,000
on payments from Erbil with consecutive timely bpd with 14 wells having been drilled, 10 of
payments being made following a four-month which are currently producing.
hiatus in early 2020. ShaMaran estimates gross proven, probable
On January 26, the Kurdistan Regional & possible (3P) reserves at 156mn barrels with
Government (KRG) made a gross payment 2C contingent resources amounting to 243.5mn
of $19.2mn for sales from the Atrush block, in barrels.
which ShaMaran holds a 27.6% working inter-
est in the Atrush block with operator Abu Dhabi Shaikan
National Energy Company (TAQA) holding During its latest operational update on January
47.4% and the KRG a carried stake of 25%. 13, GKP said that production from Shaikan
ShaMaran’s net take was $6.5mn. The same day, had averaged 36,600 bpd through 2020 with
GKP announced that a gross payment of $18mn December setting a monthly production record
($14.1mn net) had been made for December of 43,300 bpd.
crude sales from the Shaikan block. Before being replaced by Jon Harris on Janu-
Meanwhile, in a recent update Norway’s ary 18, CEO Jon Ferrier said: “Planned debottle-
DNO said that “override payments” would necking works have increased PF-1 production
resume this month with the KRG planning capacity to more than 30,000 bpd and the Com-
“to make payments towards the company’s pany expects to deliver average gross production
arrears” of $259mn. This plan is based on Brent in 2021 of 40,000-44,000 bpd.” Current output is
prices exceeding $50 per barrel in any month around 44,000 bpd.
and the incremental revenues being shared Shaikan, in which GKP holds an 80% WI,
50:50 between the KRG and the Tawke licence holds 3P reserves of more than 900mn stock
partners. tank barrels, though the reservoir is highly frac-
Middle East Oil & Gas (MEOG) understands tured, which has led to complications devel- Shaikan oilfield.
that similar arrears payment plans are in place oping the field and slowed production rates
between the KRG and other operators. considerably.™ Source: GKP

Week 04 27•January•2021 www. NEWSBASE .com P7