Thursday, July 14, 2011

Kurdistan Region of Iraq reached 250k oil production

Iraq's crude oil exports from the northern Kurdistan region in June hit a peak of 175,000 barrels a day, up from 75,000 barrels a day in February, Ashti Hawrami, oil minister for the Kurdistan Regional Government, said Wednesday.
Revenues from oil sales from the Kurdistan region over the five months since the KRG resumed exports in February has reached $2 billion.

The Kurds would receive half of that amount to pay contracting companies in accordance with a 2010 agreement with the federal government in Baghdad, the minister told an Iraqi oil conference in London.

Total crude oil output from Kurdistan is currently at 250,000 barrels a day, some 60,000 barrels a day out of which are processed in the region's refineries, the minister said.

"We will continue our work to arrive at 200,000 barrels a day of exports by the end of this year," the minister said.

The Kurdish minister said the region sits on at least 46 billion barrels of oil and as much as 100-200 trillion cubic feet of gas. The oil ministry in Baghdad announced last year that Iraq's proven crude-oil reserves, excluding Kurdistan, are estimated at 143.1 billion, the world's third largest.

DNO oil production at Kurdistan Region

“After this third party review by DNO external auditors, the Tawke oil field is confirmed to be a world class, giant oil field. The new reserves numbers far exceed our expectations of even a few months ago and certainly were not envisaged when we made the discovery in 2006. But the field’s recent performance has proven its exceptional reservoir quality,” said Managing

Director Helge Eide.

Tawke’s original oil-in-place is estimated at 1,748 million barrels and the estimated recovery factor of 36,4 per cent is based on the 2011 production profile and updated geological and reservoir models. Tawke production is currently averaging 70,000 barrels a day.

Separately, DNO International has undertaken to estimate the size of other discoveries on its licenses in the Kurdistan Region of Iraq as well as the potential of all undrilled prospects and geological horizons in response to a request by the Kurdistan Ministry of Natural Resources pursuant to the regional government’s survey of its oil and gas reserves and resources.

Within the Erbil license, the combined ultimate P50 recoverable resources for the Benenan and Bastora oil discoveries are estimated at 136 million barrels (Benenan 36 million barrels and Bastora 100 million barrels) based on an estimated original oil-in-place of 950 million barrels for the two fields and a combined recovery factor of 14 per cent (Benenan 9 percent and Bastora 18 percent). These revised (unaudited) estimates are principally attributable to the new Bastora discovery and confirmed by recent positive test results from the 

Bastora-1A horizontal sidetrack section.

A declaration of commerciality for the Benenan and Bastora discoveries was filed with the authorities on 25 June 2011 with a field development plan due by yearend. Until a development plan is approved, the volumes reported for Benenan and Bastora will be classified as contingent resources.

In its report to the Ministry of Natural Resources, DNO International has estimated that the three licenses operated by the Company in the Kurdistan Region of Iraq have a gross oil-inplace potential of 3,050 million barrels (unrisked) in known but undrilled prospects and geological horizons.

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