Atrush Field

Atrush Field
Location of Atrush Field
Country Iraq
Region Mosul
Location Sheikan district
Offshore/onshore Onshore
Coordinates 36°51′48″N 43°27′1″E / 36.86333°N 43.45028°E / 36.86333; 43.45028Coordinates: 36°51′48″N 43°27′1″E / 36.86333°N 43.45028°E / 36.86333; 43.45028[1]
Operators TAQA (39,9%)
Partners

Kurdistan Regional Government (25%)

ShaMaran Petroleum Corp. (20,1%)

Marathon Oil (15%)
Field history
Discovery April 13th 2011[2]
Start of production July 3rd, 2017[3]
Production
Producing formations Jurassic fractured carbonate[4]

Atrush Field is an oilfield near Dohuk, Iraqi Kurdistan. It was discovered by the Consortium of General Exploration Partners. As of March 12, 2013 the Kurdistan Regional Government (KRG) has exercised its option to acquire a 25% Government Interest of the Atrush Field according to the PSC contract.[5]
Oil began flowing through the Atrush Central Production Facility on July 3, 2017.[3] In September 2017, an agreement for the sale of Atrush oil was signed between TAQA, its partners and the KRG. Under the agreement, the KRG will buy oil exported from the Atrush field by pipeline at the Atrush block boundary. The quality of the oil will force a price adjustment of approximately $16/bbl lower than the dated Brent oil price. All local and international transportation costs will be an additional fee. This discount is based on the principles similar to other oil sales agreements in the Kurdistan Region of Iraq.[6]. In June, 2018 Shamaran Petroleum announced that it intends to purchase Marathon Petroleum's 15% share of the Atrush Block.[7]

Atrush Field Naming Conventions

In 2014 after a meeting of the Atrush Management Committee and the KRG Ministry of Natural Resources changes in terminology used with respect to activity in the Atrush Field were made:[8]

  • “Atrush Block”, “Atrush PSC” & “Atrush Field” were unchanged.[8]
  • The structure (previously referred to as the “Atrush structure”) is renamed after the Chiya Khere mountain, i.e. the Chiya Khere structure.[8]
  • All production facilities will be known as the Chiya Khere facilities.[8]
  • Future wells will remain sequential but will be referred to as “Chiya Khere”, short-form “CK”, commencing with well #5.[8]
  • Well pads will be known as Chamanke A, B, etc.[8]
  • Historic wells, AT-1 through AT-4, will retain their original nomenclature.[8]

Wells

Atrush-1 (AT-1) Well

Atrush-1 (AT-1) well was successfully spudded on October 5, 2010. The well had a natural flow of 6,393 barrels of oil per day. General Exploration Partners discovered 726 meters of oil column and 120 meter netpay.[2][9]

General Exploration Partners (GEP) held 80% of Atrush-1 and was in cooperation with Aspect Energy International, who owned 2/3 of GEP, thus Aspect Energy International had a share of 53,2%. Aspect Energy International sold its interest in GEP to TAQA for $600 mln,[10] which basically transferred Aspect's interest in GEP to TAQA. Shamaran's interest remains at 26,8% of Atrush-1, and the remaining 20% is held by Marathon Oil.[11]

Atrush-2 (AT-2) Well

Atrush-2 (AT-2) well was successfully spudded on May 23, 2012. The well had a flow of 42212 barrels of oil per day using a Submersible pump,[12] estimated to have been the highest flow ever in Iraqi Kurdistan.[13] The design of the DST Program, as well as the permanent completion, was managed by Daniel Riedel, Richard Sharpe, Damon Yarshenko, and Wes Whitman with key execution support provided by core contractors. AT-2 was completed for production in Q3 of 2016.[4]

Atrush-3 (AT-3) Well

Atrush-3 (AT-3) well is planned to spud during the month of March 2013, it is believed the well spudded on the 26th of March but there is no information confirming this for now.[5]

Atrush-4 (AT-4) Well

Drilled in 2014, Atrush-4 (AT-4) well is the second well to be drilled in support of the Phase One Facility.[8]

AT-4 Well Summary

  • High-angle deviated well. 82° was the maximum hole angle. This demonstrated that the field could be developed, using directional wells in the face of extremely rugged terrain.[8]
  • The well was drilled from the AT-1 pad, which is correctly known as Chamanke-A.[8]
  • The Jurassic reservoir is approximately 72m higher than when it was encountered in AT-1.[8]
  • Two limited well tests were performed for fluid samples.[8]
  • The combined rate of fluid production was over 9,000 bopd of 26°API oil.[8]
  • There wasn't an indication of a gas cap.[8]
  • An interference test was also conducted. The test demonstrated instantaneous pressure communication with AT-2.[8]
  • AT-4 was suspended as Phase One Facility producer.[8]
  • AT-4 was completed for production in Q3 of 2016.[4]

Chiya Khere-5 (CK-5) Well

Chiya Khere-5 (CK-5) well[8] was completed in Q3 of 2015.[4]

Chiya Khere-6 (CK-6) Well

Chiya Khere-6 (CK-6) Phase 2 appraisal well has a total depth of 2,105 metres. The TAQA-operated well reached TD on November 5, 2014, after 36 operational days. Part of the eastern part of the Atrush block the well is located on the Chamanke C pad. This pad is also the location of AT-3. CK-6 is a directional well, drilled in SSE direction from surface. CK-6 encountered the Jurassic age reservoir at a higher elevation (~139 metres) than the nearby AT-3 well.[14]

Well Testing

DST #1[14]
  • Formation: Alan[14]
  • Perforated interval: 12 metres[14]
  • Using an Electric Submersible Pump (ESP) and nitrogen lift the heavy oil was produced at a low rate.[14]
  • The test interval was the deepest from which oil has been recovered. At -460 m below sea level, the CK-6 oil was found to be almost 200 m deeper than the oil recovered from the equivalent reservoir in well AT-2.[14]
  • The viscosity of the recovered oil was lower than the oil from AT-2.[14]

Chiya Khere-7 (CK-7) Well

Chiya Khere-7 (CK-7) appraisal and development well drilling operations commenced prior to September 19, 2017. CK-7 is located in the central area of the Atrush Block. The producing well, AT-2, is approximately 3 kilometres to the east, while AT-3 is 3.5 kilometres to the west. The well is most likely being drilled from the Chamanke E pad. The objectives are to add another producing well by appraising the Mus formation's commercial potential and to reduce the uncertainty in the determining the depth of the medium to heavy oil transition zone. The well is expected to reach the 1,575 metre Total Depth within 52 days, using the Romfor 25 drilling rig.[15]

Chiya Khere-8 (CK-8) Well

Chiya Khere-8 (CK-8) well[8] was completed in Q3 of 2015[4]

Future wells

Two wells are planned for 2018, an appraisal/producing well Chiya Khere-10 (CK-10) and a water disposal well Chiya Khere-9 (CK-9).[16]

Wells Pads

  • Chamanke A[17] Construction completed
  • Chamanke B[8] Construction completed
  • Chamanke C[4] Construction completed
  • Chamanke D[4] Proposed location is 2 km west of Chamanke A
  • Chamanke E[4] Proposed location is 2 km east of Chamanke B
  • Chamanke F[4] Proposed location is east of Chamanke C
  • Chamanke G[4] Proposed location is northeast of Chamanke B

Facilities

A 30,000 bopd Phase 1 facilities has been completed.[18] As of September 29, 2017 the facility has achieved a regular daily export of more than 22,000 barrels of oil equivalent.[6] Facility production is expected to increase to 30,000 barrels of oil equivalent per day during 2017.[6] In June, 2018 Shamaran Petroleum reported a partial blockage of the production facility's heat exchanger. Sediment samples were analyzed and it was determined that the blockage was caused by salt. The most probable source of the salt might be drilling fluid losses from the drilling of CK-5 and AT-2. The heat exchanger was cleaned. A trial process of injecting fresh water at the CK-5 wellhead and separating salt water out at the production facility's separator have significantly reduced the quantity of salt in the crude to be processed for export. As of June, 2018 approximately 20,000 bopd of processed oil is being exported. Water injection at the wellhead will continue while gradually increasing production as the field personnel closely monitor the facility. Water injection is limited due to small daily disposal capacity, once the CK-9 water disposal well in the second half of 2018, the capcity will increase. [19]


Pipeline

  • Pipeline project has been completed[18]
  • The pipeline is made up of 4 sections.[18]
    • 10" Spur line from the Phase 1 facility to the Intermediate pigging and pressure reduction station
    • 12" Spur line from the Intermediate pigging and pressure reduction station to the southern Atrush block boundary
    • 12" Feeder line from the southern Atrush block boundary to the Shaikan block's south boundary
    • 36" Feeder line from the Shaikan block's south boundary to the Kurdish Export Pipeline.

References

  1. ↑ http://www.shamaranpetroleum.com/i/pdf/CorporatePresentation_Sept2012.pdf
  2. 1 2 http://shamaranpetroleum.mwnewsroom.com/press-releases/shamaran-announces-major-oil-discovery-at-atrush-p-tsx-venture-snm-201104130689394001
  3. 1 2 http://shamaranpetroleum.mwnewsroom.com/press-releases/oil-production-in-atrush-started-tsx-venture-snm-201707031098541001
  4. 1 2 3 4 5 6 7 8 9 10 https://www.shamaranpetroleum.com/site/assets/files/3675/2017-05-15-cp.pdf
  5. 1 2 http://shamaranpetroleum.mwnewsroom.com/press-releases/shamaran-2012-year-end-financial-and-operating-res-tsx-venture-snm-201303150860336001
  6. 1 2 3 http://shamaranpetroleum.mwnewsroom.com/press-releases/shamaran-announces-atrush-oil-sales-agreement-signed-tsx-venture-snm-201709291102921001
  7. ↑ https://shamaranpetroleum.com/site/assets/files/32005/2018-06-04-nr-snm.pdf
  8. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 http://www.shamaranpetroleum.com/i/pdf/2014-Sep-Pareto-Securities-Oil-Gas-Conference.pdf
  9. ↑ http://www.shamaranpetroleum.com/s/Atrush.asp?ReportID=420604
  10. ↑ https://www.reuters.com/article/2013/01/02/kurdistan-taqa-acquisition-idUKL5E9C215720130102?irpc=932
  11. ↑ http://www.iraq-businessnews.com/tag/abu-dhabi-national-energy-company-taqa/
  12. ↑ https://www.reuters.com/article/2012/09/13/idUS200698+13-Sep-2012+PRN20120913
  13. ↑ http://www.arabianoilandgas.com/article-10614-shamaran-strikes-it-rich-at-atrush-block/#.UQ7FMm_uSfV
  14. 1 2 3 4 5 6 7 http://www.oilandgastechnology.net/upstream-news/taqa-flows-oil-ck-6-well-kurdistan
  15. ↑ http://shamaranpetroleum.mwnewsroom.com/press-releases/shamaran-atrush-development-update-spud-of-ck-7-tsx-venture-snm-201709191102449001
  16. ↑ https://www.shamaranpetroleum.com/site/assets/files/8899/2018-02-15-cp_snm.pdf
  17. ↑ http://www.marketwired.com/press-release/shamaran-q2-2014-financial-and-operating-results-tsx-venture-snm-1940863.htm
  18. 1 2 3 http://www.shamaranpetroleum.com/i/pdf/2017-09-11-CP.pdf
  19. ↑ https://shamaranpetroleum.com/site/assets/files/32941/2018-06-08-nr-snm.pdf
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