Members of the Organization of Petroleum Exporting Countries expect to increase their total production capacity by more than 1 million b/d in 2006 through new discoveries and increases in existing fields.
The Centre for Global Energy Studies (CGES), London, recently outlined OPEC capacity additions expected this year by country in its Global Oil Report.
Algeria
State-owned Sonatrach is to bring Bir Berkine and North Bir Berkine fields into production in April with an aggregate production capacity of 25,000 b/d of oil.
Although not classified as crude under OPEC quota rules, BP PLC’s In Amenas wet gas project in the southeastern Illizi basin is expected to yield 50,000 b/d of liquids in addition to its gas output when it begins production early this year.
Indonesia
Oyong oil field under development by Santos Ltd. off East Java is expected to begin producing “towards the middle of 2006” at an initial 6,000 b/d, down from an earlier estimate of 20,000 b/d.
PetroChina wants to boost its Indonesian oil and gas production by 23% to more than 88,000 boe/d. But how much of that increase will be liquids is unclear, CGES reported.
Iran
Infield drilling and workovers are under way to boost production from Iran’s older fields and offset natural decline estimated at 300,000-400,000 b/d each year.
The second phase of Darkovain field development under a buy-back contract by Italy’s Eni SPA is to begin operation in the coming Iranian year, which begins in March. The field came on stream at an initial rate of 50,000 b/d in July, and production is expected to plateau at 160,000 b/d with completion of the second phase of the project, requiring the drilling of 14 wells.
PetroIran Development Co. is nearing completion of its project to boost production by 50,000 b/d from offshore Salman oil field. Production should come on stream this year. CGES reported Royal Dutch Shell PLC plans remedial work at its Sorous-Nowruz redevelopment to restore capacity to the 190,000 b/d originally expected before a series of technical difficulties restricted output.
Iraq
Iraqi government officials have ambitious plans to restore oil production to its prewar level of 3 million b/d from existing fields by the end of 2006. Those plans, however, “take little account of the damage done to reservoirs in the south through overproduction, or the frequent attacks on oil pipelines in the north that have constrained output since the US-led invasion of 2003,” said CGES.
Ahmed Chalabi, head of Iraq’s Energy Council, said production from northern fields around Kirkuk can be increased by 300,000-400,000 b/d from the current level of 280,000 b/d, which is sufficient to supply the Baiji refinery. “However, exports through the northern pipeline to the Turkish export terminal at Ceyhan have been sporadic at best, with repeated attacks damaging the line,” said CGES analysts.
Iraq’s current crude production capacity of 2 million b/d may not be sustainable, they said. Its giant Rumaila field in the south is suffering from declining pressure. KBR revamped the industrial water treatment plant in Garmat Ali and the cluster pumps for the water injection system, but the twin 48-in. pipelines transporting the treated water to the cluster pumps cannot withstand the high pressure due to age. Until these lines are replaced, pressure in Rumaila field will remain low, and production rates must be lowered to prevent further irreparable damage to the reservoir.
“The high cost of security in Iraq, coupled with logistical bottlenecks, has hampered rehabilitation work in southern Iraq, and there is no obvious sign that the situation will change significantly in the near future,” CGES said.
Kuwait
The second and final stage of construction at gas booster station 131 (BS-131) in northern Kuwait is due for completion this month, signaling the end of reconstruction of gathering center 15 (GC-15), which was destroyed by an explosion and fire at Raudhatain field in 2002. The fully operational GC-15 will have throughput capacity of 300,000 b/d and will raise the emirate’s oil production capacity to 2.8 million b/d.
Libya
Libya’s oil production capacity could rise by 190,000 b/d by the end of the year with increases at Eni’s Elephant field and Repsol YPF SA’s fields on Block NC-186.
Eni’s Elephant field began production at an initial rate of 10,000 b/d in 2004, which rose to a first-phase plateau of 25,000 b/d. Production is to increase to 150,000 b/d by the end of 2006 following the completion of pipeline infrastructure.
“Repsol YPF and its partners in Murzuk basin Block NC-186 hope to raise output from their A and D fields by 7,000 b/d and to get approval for their development plans for the B and H fields, which could yield a further 57,000 b/d by the end of the year. A further 30,000 b/d of production could come from Repsol’s El Sharara field, which is producing about this much below capacity,” said CGES.
Nigeria
Nigeria had planned to add 600,000 b/d of oil production capacity during the first half of 2006, taking capacity to 3.1 million b/d. However, Shell recently shut in 455,000 b/d of Nigerian production because of escalating rebel attacks on an export terminal and other facilities and the kidnapping of nine foreign oil workers (OGJ Online, Feb. 21, 2006).
At any rate, CGES said, “It is not at all clear where all the new [Nigerian] oil will come from.”
The first increase was to be from additional production at Shell’s deepwater Bonga field, which was brought into production in November. Production rates increased faster than expected to 170,000 b/d by the end of January and are expected to peak at 225,000 b/d by midyear. The second big increase was expected from start-up of ExxonMobil’s Erha field, due on stream in March, with production expected to plateau of 150,000 b/d.
Qatar
Qatar’s aggregate crude production capacity is expected to reach 963,000 b/d by the end of 2006, up 140,000 b/d from 2005.
State-owned Qatar Petroleum and Maersk Oil Qatar Co. agreed at the end of 2005 to further develop al-Shaheen field. Its production has been limited by gas-handling facilities to 200,000 b/d but is expected to rise to 240,000 b/d early this year.
Occidental Petroleum Corp. is continuing redevelopment of Idd al-Shargi North Dome (ISND) field and development of the Idd al-Shargi South Dome (ISSD) field. Production capacity at ISND is expected to rise to 115,000 b/d and at ISSD to 15,000 b/d by the end of 2006.
Oil production capacity at Qatar Petroleum’s Dukhan field is due to rise to 380,000 b/d by the end of 2006, according to a Middle East Economic Survey report, up from its current level of 335,000 b/d.
Saudi Arabia
Saudi Aramco intends to increase the number of development wells drilled by 61%, according to the company’s 2006 operating plan. “These wells are seen as supporting current production levels and contributing to future increases, although no figures were published,” said CGES,
Gas oil separation plant 3 (GOSP-3) at the Haradh section of Ghawar field began operation early this month. When fully on stream in the second quarter, it will boost Saudi Arabia’s ability to produce Arab Light crude by 300,000 b/d.
UAE
Yousef Omair Bin Yousef, chief executive of Abu Dhabi National Oil Co., has been quoted as saying the UAE’s oil production capacity would rise by 200,000 b/d to 2.7 million b/d this year. That increase is expected to come gradually during the second half from a number of onshore fields across Abu Dhabi.
Venezuela
“In Venezuela, what is left of the independent oil sector is expected to be preoccupied with the ongoing conversion of its erstwhile operating contracts into joint ventures in which state-owned Petroleos de Venezuela SA will hold the majority share,” CGES said. “The continuing restructuring of these contracts is expected to undermine any prospects of output growth at these projects in 2006.” ✦
