Sarta Phase 1A development in the Kurdistan region of Iraq will proceed, reports Genel Energy PLC, London, a new block partner.
Genel acquired a 30% interest in the Sarta production-sharing contract from operator Chevron Corp., which retains 50%. Genel also acquired a 40% interest from Chevron in the Qara Dagh block, which it will operate through a carry arrangement with Chevron retaining 40%. The Kurdistan Regional Government holds 20% interests in the blocks.
Genel acquired the Sarta stake by agreeing to pay 50% of field development costs until achievement of a production target plus a success fee based on a production milestone.
In Phase 1A, the final investment decision for which was made in February, the companies will recomplete the Sarta-2 well, place the Sarta-3 well on production, and build a central processing facility with capacity of 20,000 b/d of oil. Both wells flowed about 7,500 b/d of oil on test. The main reservoir is Lower Jurassic Mus-Adayah.
Drilling of a third well is expected to begin within 12 months of the start of production, expected in 2020. Production capacity can be increased.
Genel booked a net 10 million bbl of proved and probable reserves based on the preliminary Sarta development phase.
On the Qara Dagh block, siting is under study for the Qara Dagh-2 well to be drilled in 2020, Genel said. The Qara Dagh-1 well, completed in 2011, tested oil in two zones of the Upper Cretaceous Shiranish formation.
