By OGJ editors
HOUSTON, Sept. 28 -- The government of the autonomous region of Kurdistan in northern Iraq has entered into a memorandum of understanding (MOU) with K Petroleum Co. (KPC) for field studies over an area adjacent to Taq Taq oil field in northeastern Iraq. KPC is a wholly owned subsidiary of Heritage Erbil Oil Ltd., a 50-50 joint venture of Heritage Oil Corp., Calgary, and the Kurdistan firm Eagle Group.
The area is considered prospective for hydrocarbons. Over 100 prospects have been identified in this zone, the majority being long anticlinal surface structures of different prospectivity separated by wide synclines (OGJ, July 29, 1996, p. 108). There are 49 structures over 20 km long reaching up to 74 km at Chemchemal field. Taq Taq, which borders the MOU area, is among the successfully tested and proven fields.
Drilled in 1960, Taq Taq was declared a discovery with a second exploration well in 1978. Two additional appraisal and development wells were drilled in the 1990s. IHS Energy estimates that the field has reserves of 130 million bbl of oil and expects it to be capable of producing 60,000 b/d. The field currently produces 3,600 b/d of 20-40° gravity crude oil. Prospects similar to the Taq Taq structure could be present in the area covered by the MOU.
KPC has preparatory work under way, and fieldwork is expected to begin shortly on regional studies, geological field mapping, a geochemical field survey, and a gravity survey. The government's Oil, Gas, and Petrochemical Establishment will provide all available data, logistical support, and security.
Negotiations to formalize the MOU into a production-sharing agreement are expected to begin while the work program is being carried out, Heritage said.
