Roger Vielvoye
International Editor
Major investment programs are under way in the United Arab Emirates and Qatar aimed at stepping up oil flow, while Kuwaiti officials say their industry can bring on new production as required.
The action is part of a buildup in Middle East productive capacity (OGJ, Apr. 9, p. 21).
Kuwait's present capacity is 2.5 million b/d. And with reserves of about 95 billion bbl arid a well developed infrastructure, Kuwait has the ability to move quickly in adding productive capacity.
Kuwait, more than other Middle East producers, will need to adjust its production to requirements of its extensive refining operations and its growing refining and marketing operations in Europe and the Middle East.
KUWAIT ACTIVITY
Current growth in productive capacity in Kuwait is designed to boost supply of lighter crudes.
Drilling to deeper zones under the medium crude oil structures that are the backbone of the Kuwaiti industry has yielded substantial volumes of light crude.
Crudes of 36-390 gravity initially were blended with medium crudes. Now, Kuwait is starting a separate light crude stream with an initial flow of 100,000 b/d.
By the end of this year light crude production is to reach 200,000 b/d, most of it earmarked for Kuwait's refining network at home and abroad.
The Kuwaiti oil industry also is seeing the first yield of the government to government economic agreement with the Soviet Union signed in 1986.
The U.S.S.R.'s Technoexport is working on a $60 million desalting and dehydration project at Kuwait Oil Co. gathering centers. Previous desalting and dehydration work was undertaken by U.S. and Japanese companies.
Soviet technicians also are appraising development options for Bahrah oil field in northern Kuwait, which could be placed on stream the next few years using Soviet contractors and equipment.
QATAR GAS DEVELOPMENT
Qatar activity centers on continued development of the world's biggest offshore gas reservoir, the 150 tcf North field.
The $1.3 billion first phase of the project is designed to deliver 800 MMcfd, starting next year, However, Jabir al-Murri, managing director of Qatar General Petroleum Corp. (QGPC), says first stage production will be only 600 MMcfd.
Initial flow will be used domestically.
QGPC is pressing attempts to sell liquefied natural gas to customers in Japan. Industry sources say the upturn in prospects for sales to the Far East has improved Qatar's chances of achieving a commercial LNG project.
QGPC also is pursuing the idea of North field becoming a long term source of gas, to the entire Gulf Cooperation Council zone through construction of a transmission system linking Qatar with Kuwait. Qatar is negotiating to sell gas to Dubai in a separate deal.
Al-Murri said North field development is right on schedule.
A 16 well drilling program is complete. The wells were drilled from two wellhead platforms, which later this year will be bridge linked to four other platforms for living quarters, utilities, riser treatment, and flaring.
Production will move ashore through a 34 in. dry gas line and a 12 in. liquids line to a landfall at Ras Laffan. Gas and liquids will then move by pipeline to gas processing and export facilities under construction at Umm Said.
Construction of the gas processing plant is scheduled for completion by yearend. About 50,000 b/d of gas liquids will be available for export.
QGPC has broadened the scope of the project to include a gas sweetening plant at Umm Said and a 60,000 ton/year sulfur processing unit at the nearby Qatar Petrochemical Co. complex.
Petrochemical units will be built to use gas liquids from North field.
QGPC has signed an outline agreement with Montedison of Italy for a 900,000 ton/year methanol plant. It also is considering construction of a major ethylene project with Phillips Petroleum Co. and expansion of output from the Qafco fertilizer joint venture between QGPC and Norsk Hydro.
In addition, the state company is studying the feasibility of building a 500,000 ton/year MTBE plant and has agreements for two metals projects in the Umm Said area.
Although Qatar's long term financial future rests with the huge North gas field, QGPC is looking for short term increases in oil production to match any rises in its Organization of Petroleum Exporting Countries quota.
On the schedule is development of Diyab onshore oil field. It is to produce about 50,000 b/d during 1992 using upgraded facilities in nearby Dukhan field.
Offshore production facilities in Idd el-Shargi, Maydam Mahzam, and Bul Hanine fields are being upgraded.
The major outside contribution to Qatar's exploration program last year came from Amoco Qatar Petroleum Co. It drilled three dry holes on its 8,000 sq km onshore permit in 1989 and plans three or four wildcats this year.
UNITED ARAB EMIRATES
Abu Dhabi, biggest of the United Arab Emirates, has started a demothballing program that will increase its productive capacity. Production has been running consistently at about 1.6 million b/d.
Dubai, the other substantial producer in the U.A.E., produces a steady 400,000 b/d from its offshore fields.
The first sign that production will increase came from Abu Dhabi Co. for Onshore Oil Operations (ADCO), which disclosed that Bab field capacity will be expanded now that it has been demothballed.
Since recommissioning, Bab has been producing about 40,000 b/d. ADCO has not revealed the size of the planned expansion, but industry sources say field reserves could justify an increase to more than 200,000 b/d.
ADCO also is drawing up plans to increase capacity of its export terminal at Jebel Dhanna.
Offshore, Abu Dhabi National Oil Co. (Adnoc) is working on plans to increase sustainable productive capacity of Upper Zakum oil field to 500,000 b/d from 320,000 b/d by 1992. Adnoc has an 88% interest in Upper Zakum, where its partner is Jodco of Japan.
The project will be one of the biggest offshore operations in the Middle East, requiring installation of five production platforms and drilling of 100 wells. That will increase the number of Upper Zakum wells to 360.
An integral part of the program will be the start of gas lift using gas from Abu Al-Bukhoosh's nonassociated Khuff reserves, also under development.
Khuff gas production from Abu Al-Bukhoosh is to start in summer 1991 from a production platform that will be installed under a contract with Technip Geoproduction of France.
NORTH AND SOUTH YEMEN
One of the hottest exploration plays on the Arabian Peninsula is under way on the border of North and South Yemen.
The 2,200 sq km border area lies between Yemen Hunt Oil Co.'s Marib-Jawf fields in North Yemen and the ShabWa area of South Yemen, where Soviet contractors are placing a series of fields on stream.
Last year the two Yemen states ended a long dispute over the border zone. They created a jointly administered area that attracted many bids from international groups when it was offered for exploration licensing.
A combine led by Hunt-Exxon Corp. and including Total CFP, Kuwait Foreign Petroleum Exploration Co. (Kufpec), and Machinoexport and Zarughgeologia of the Soviet Union acquired the acreage. It expects to start exploration this month.
The group is obligated to conduct a 1,700 line km seismic survey this summer and spend at least $37 million to drill seven wells during the next 5 years.
In South Yemen, Soviet development of Shabwa field is moving into a crucial stage. A 118 mile, 20 in. pipeline from the fields to Bir Ali on the Gulf of Aden is being prepared for start-up.
Initial throughput will be 20,000-30,000 b/d, ending the current 10,000 b/d tank truck shuttle between Shabwa and the Aden refinery.
Technoexport, Soviet operator for field development, has negotiated through the Soviet Ministry of Geology a change of its status from contractor to operator of a production sharing contract on a large tract northwest of the Shabwa producing area, where South Yemen will remain as the sole owner.
A Total CFP, Unocal, and Kufpec combine is drilling its second well on the East Shabwa permit after reporting hydrocarbon shows in the first.
South Yemen is awarding new acreage.
Petro-Canada is at the point of signing an agreement covering the Habrout block near the border with Oman. The tract adjoins the North and South Sanau blocks, where the Ministry of Energy and Minerals has started negotiations with a combine of the Bin Ham group of Abu Dhabi, Tullow Oil of Ireland, and Complex (Yemen) Ltd.
In North Yemen, Yemen Hunt's gross production from the Marib-Jawf fields appears to be steady at about 200,000 b/d following start-up of a fifth field in the area, Asad al-Kamil gas/condensate field.
Asad al-Kamil holds reserves estimated at 2.7 tcf of gas and 133 million bbl of liquids.
On the exploration scene, a unit of Texaco Inc. spudded the first well on the 22,000 sq km production sharing block it took over from Exxon at the beginning of last year. Exxon had drilled two dry holes on the acreage.
Units of Total CFP and Texaco relinquished their large onshore/offshore block in the Mocha-Khawkhah area. The group drilled a dry hole last fall.
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