Page 8 - MEOG Week 48

MEOG FINANCE & INVESTMENT MEOG

BP to continue Middle East investments

MIDDLE EAST IN an interview with Bloomberg last week BP’s These sentiments were echoed by Willis,
SVP for the Middle East said that the super-ma- who said that the field’s capacity will probably be
jor will continue to invest in oil and gas projects raised to 1.7mn bpd in the next several years. He
in the region despite its stated intention to make noted that output had been cut in April to comply
the transition to renewable energy and to reduce with OPEC+ quotas and has fallen from 1.47mn
emissions. bpd in June to just under 1.4mn bpd now.
Of its asset bases in Iraq, Oman and the UAE, This will drop to 1mn-1.2mn bpd without
SVP Stephen Willis said BP would “continue workers adding wells, maintaining pressure
to invest in these”, without specifying planned and separating out water, according to Willis.
investment levels, but adding that the assets have He added that there was currently no timeline
“world-leading operating cost, capital cost and for reaching the planned production plateau of
production efficiency performance.” 2.1mn bpd.
Willis’ comments follow an interview for S&P Across the Gulf, in October the company
Global Platts in early November with BP’s coun- launched Oman’s Ghazeer project, which is the
try head, Zaid Elyaseri, during which the execu- second phase of its plan to develop gas reserves
tive revealed that the company was in talks with in Block 61.
Iraq’s Ministry of Oil (MoO) regarding plans to This announcement came four months ahead
increase production at Rumaila to an agreed pla- of schedule, with output anticipated to ramp up
teau of 2.1mn barrels per day from the current to 0.5bn cubic feet (14.2mn cubic metres) per
level of 1.4mn bpd. day of gas in addition to the 1 bcf (28.3 mcm) per
He said: “There is an ongoing discussion with day produced by the first phase project, Khazzan.
the Ministry of Oil and Basrah Oil Co. [BOC] on A further 65,000 bpd of condensate will also be
how to proceed, given the low oil price environ- produced.
ment and the reduction in the activity set that the Willis noted that a further 0.4 bcf (11.3 mcm)
ministry has requested all IOCs to do this year as per day of output could be added without further
a result of low oil prices.” investment.™

PERFORMANCE

First oil announced at Sarta

KURDISTAN LONDON-LISTED Genel Energy announced access point on the KRG’s export pipeline at
last week that it had achieved first oil from the Khurmala.
Sarta field in the Kurdistan Region of northern Genel said that preparations were ongoing for
Iraq. Genel said that crude oil was now flow- the 2021 appraisal drilling campaign, targeting
ing to a 20,000 barrel per day early production “a material portion” of the 250mn barrels contin-
facility (EPF) from the Sarta 3 well, the first to gent resources in the Jurassic. Production phase
be drilled. A workover is ongoing on the second 1A will target 34mn barrels of 2P gross reserves
well – Sarta 2 – which is expected to come into in the Mus-Adaiyah reservoirs.
production in Q1 2021. The company’s CEO, Bill Higgs, noted: “This
In January 2019 Genel acquired a 30% work- will enable us to work with Chevron to optimise
ing interest in Sarta from US major Chevron, the value of the asset in the years ahead.”
which retains a 50% WI, with the Kurdistan The company also holds respective interests
Regional Government (KRG) holding a carried of 44% and 25% at Taq Taq and Tawke.
stake of 20%. Genel also acquired a 40% stake in Drilling work at Tawke has been slowed by
the Qara Dagh block. the ongoing COVID-19 pandemic coupled
In the company’s first-half results, Genel said with uncertainty about payments, but Genel
that civil construction work at Sarta was mate- has talked up its “ability to rapidly scale up as the
rially complete, with the company focusing on external environment improves”. Gross produc-
completing and commissioning the EPF. This tion there averaged 108,580 bpd during the first
had been due to occur in Q3, but operations were half, increasing to 115,000 bpd following fast-
delayed by restrictions on movement related to tracked activity amid improved oil price and
the coronavirus (COVID-19) pandemic. Of an payment stability.
anticipated second-half capex of $45mn, around Taq Taq was once the firm’s flagship asset,
50% is earmarked to be spent on bringing Sarta producing in excess of 100,000 bpd in 2015.
into production. However, following major reserves downgrades,
Crude cargoes will be transported to an output has now fallen to just 11,260 bpd.™

P8 www. NEWSBASE .com Week 48 02•December•2020