DNO prepares to start oil production in Iraq

Sept. 20, 2006
DNO ASA, Oslo, is planning early production, possibly in first quarter 2007, from Tawke oil field in the northern Kurdish region of Iraq based on test results from the discovery well and an appraisal well.

By OGJ editors
HOUSTON, Sept. 19 -- DNO ASA, Oslo, is planning early production, possibly in first quarter 2007, from Tawke oil field in the northern Kurdish region of Iraq based on test results from the discovery well and an appraisal well.

DNO achieved a maximum flow rate of 5,000 b/d of oil during open-hole tests of Tawke-1A, a twin well 20 km from the Tawke-1 discovery well. Tawke-1 also flowed at 5,000 b/d on test (OGJ Online, June 19, 2006, Newsletter). This well penetrated two reservoir zones exceeding 2,000 m deep, which were preserved behind casing and will be tested later.

DNO said all major facilities are secured, and it expects the development plan to be finalized and presented soon to partner Kurdistan Regional Government.

Tawke-1A was drilled in open-hole mode to retest the shallower reservoir sections of less than 1,000 m because it is assumed that formation damage during installation and casing in the discovery well may have restricted oil flow.

The tests results, which were not conclusive, will be further investigated, and additional tests of the intervals are planned in Tawke-2, a stepout well 2 km west of the Tawke discovery. When conducting Tawke-2 tests, a more extensive acid stimulation and fracturing of the reservoir sections will be considered, DNO said.

Tawke-2 will penetrate only the shallower reservoir sections. It will be followed by the drilling of an exploration well in the eastern part of the Tawke area. DNO is performing a 3D seismic survey across the area as part of a program to assess the area's full oil potential.

To accelerate drilling of additional production wells into the shallower reservoir sections, DNO expects to mobilize a smaller carrier rig into the Production-Sharing Agreement (PSA) area during the fourth quarter. This rig may also later test the deeper reservoir sections in Tawke-1. After the additional tests, Tawke-1 will be completed as a producer.

DNO also is engaged in exploration in other areas of the PSA. It is drilling the first well at the Khanke prospect with a second drilling rig that was mobilized into the area in July. The Khanke-1 well is expected to reach its planned 3,500 m TD in mid-October. The next well location is contingent on Khanke-1 results. Several additional exploration prospects in the PSA area have been identified, DNO said.

Plans are in progress to continue with 2D seismic acquisition in unexplored areas of the PSA in October when the 3D seismic acquisition is scheduled for completion.