Tag Archive | "MOL"

Wood Group Completes Kurdistan Oil Project

By John Lee.

Wood Group Intetech (WG Intetech) has successfully completed a six-month project for Hungary’s MOL Group, which saw WG Intetech develop a detailed design for an acid gas reinjection well on MOL’s Akri-Bijeel field in Iraq.

The scope of the agreement included well design and comprehensive materials selection for all well components.

Dr Liane Smith (pictured), Managing Director and Founder of WG Intetech, said:

“Acid gas reinjection involves handling high pressure gas with a high concentration of hydrogen sulphide … This can lead to an increased safety risk if the correct materials are not selected at the design stage, and requires an intense focus on achieving well integrity. There are currently very few companies in the world that offer this level of experience.”

(Source: Wood Group Intetech)

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Dana Remains Committed to Iraq, Despite Claim

By John Lee.

Sharjah-based Dana Gas and its consortium partners, Crescent Petroleum and Pearl Petroleum, is pursuing $100 million (117 billion Iraqi dinars) in payments from the Kurdistan Regional Government (KRG).

In a statement to the Abu Dhabi Securities Exchange (ADX), the company said:

“The LCIA [London Court of International Arbitration] Tribunal recently ordered the KRG to pay the Consortium US$100 million within a timeframe of 30 days by way of a second interim order.

“In default of its legal obligations, the KRG failed to make payment by the stipulated deadline of 17th November 2014 and as a
consequence, the Tribunal’s order became peremptory in nature, enabling its enforcement by the English Court.

“With the Tribunal’s permission, on 12th December 2014, an application to the English Court has been made for enforcement of the order, with the prospect of sanctions being imposed on the KRG for non-compliance.”

But the company said that despite this, and a further multi-billion-dollar claim for breach of contract, which is due to be heard in April of next year, it remains committed to working in the Kurdistan and Iraq, adding:

“[We] sincerely hope that all outstanding contractual matters with the KRG be resolved, amicably and in good faith in the shortest possible time, within the contractual framework”.

“This will in turn enable the full and proper development of the Khor Mor and Chemchemal fields as envisaged by the Contract, for the benefit of the people of the Kurdistan region and all of Iraq.”

(Source: Dana Gas)

(Picture: Dana Gas operations in Iraqi Kurdistan)

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Video: Kurdistan is the Most Important for MOL

From ProactiveInvestors. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

Alexander Dodds, executive vice president of exploration and production at Hungary-based MOL Group, talks about finding the balance between high risk exploration and declining oil production.

Dodds says Kurdistan is the most important region to the company due to its size.

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Shares in GKP Jump Again on Iraq Update

By John Lee.

Shares in Gulf Keystone Petroleum (GKP) gained another 19 percent on Thursday morning, following approval of its Field Development Plan (FDP) for Akri-Bijeel, in which it holds a 20 percent working interest.

The FDP is based on these two discovery areas, i.e. Bijell area and the Bakrman area. The development will be done in two phases, phase one objective is to allow the Operator to better determine key factors such as the reserves base, recovery factor, optimum surface facility design and overall field development cost.

Phase I will start immediately with 4 drilling rigs and 1 work over rig to help reduce the overall timeline with front-end-loading wherever possible for Phase II.

John Gerstenlauer  (pictured), Chief Executive Officer of Gulf Keystone, commented:

“The approval of the Field Development Plan for the Akri-Bijeel Block is a culmination of years of exploration and appraisal, which will now lead to a development phase and production in due course. It is an important milestone for all stakeholders in the Akri-Bijeel project.”

This comes a day after a 14 percent rise in the share price after the company announced a postponement of its interim management statement.

(Sources: GKP, Yahoo!)

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Kurdistan, Hungary Seek to Strengthen Relations

The State Secretary at the Ministry of Foreign Affairs of Hungary, Mr. Zsolt Nemeth, has received the Head of the KRG Department of Foreign Relations, Minister Falah Mustafa to discuss a number of issues including ways to further enhance mutual relations. The meeting was also attended by the Hungarian Ambassador to Iraq, Mr Tibor Szatmari.

Minister Mustafa arrived in Budapest on Thursday to conduct a number of meetings with Hungarian government officials as well as to deliver a lecture at the Corvinus University in Budapest.

During the meeting both sides underlined the importance of strengthening political, economic, cultural, and educational ties. Minister Mustafa briefed the Hungarian side on the latest political developments in Kurdistan including the recently held parliamentary elections which took place on 21 September of this year.

Mr Nemeth commended the political and economic developments of the Kurdistan Region and expressed Hungary’s desire to strengthen ties with Kurdistan across a broad range of areas. “We place great value on opening our General Consulate in the Kurdistan Region because it is a safe and stable area and provides a healthy environment for investment,” Mr Nemeth said.

Minister Mustafa emphasized Kurdistan Regional Government’s desire to establish ties with the international community and expressed the full readiness of the KRG in expediting the opening of the Hungarian Consulate General in Erbil. He also touched upon the importance of establishing diplomatic presence in Erbil, saying that it would open more doors for the involvement of Hungarian companies in the economic development of Kurdistan Region. Minister Mustafa emphasized the importance of building bridges and partnerships with the international community.

Minister Mustafa said: “It is time to build upon the visit of President Barzani to Hungary last year. We see Hungary as a friend and partner of the Kurdistan Region.”

The two sides also talked about the situation of Syrian refugees in Kurdistan Region. Mr Nemeth praised KRG’s efforts in sheltering and providing humanitarian aid for refugees and expressed the readiness of Hungarian government to provide humanitarian aid to the Syrian refugees in Kurdistan Region.

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Akri Bijeel Oil Block Declared ‘Commercial’

By John Lee.

MOL Plc has informed the market that Kalegran Ltd. (a 100% subsidiary of MOL), as has officially declared the Akri Bijeel Block to be ‘commercial’, based on the discoveries made at the Bijell-1 well (pictured) in Jurassic horizons and Bakrman-1 well in Triassic horizon.

Kalegran is the Operator of the Block on behalf of the Contractor, comprising Kalegran and Gulf Keystone Petroleum International Limited (GKP).

MOL is accelerating its work program through employing additional rigs and plans to submit the Field Development Plan for the whole block by the end of 2014.

Please find below an update on its ongoing work programs in the Akri-Bijeel block:

Operational highlights:

  • Results of the Bakrman-1 exploration well: Triassic Kurra Chine B formation was subject to extended well testing from 25 July until 26 of August 2013. The well test confirmed long term production sustainability. Current tests gave maximum flow rates of 3,192 bbl/d light density oil with average 40⁰ API gravity and 10.19 MMscf/d of sour gas on 64/64″ choke. Submission of the Appraisal Work Program is due in Q4 2013. Kurra Chine B formation Discovery is subject to Appraisal Work Program which has been started with a 3D seismic acquisition fully covering the Bakrman structure. Drilling 2 appraisal wells is planned to start in 2014 and we are targeting early oil production around in the first half of 2015. Independently from the Triassic discovery, potential Jurassic reservoirs are also targets of further wells.
  • Appraisal program of Bijell-1 discovery: Kalegran Ltd and its partners are going on with the Appraisal Work Program of the Bijell Field. Extended Well Test (“EWT”) facility construction and commissioning was successfully finished. It is capable of handling up to 10,000 bbl/d gross nameplate capacity production on the Bijell-1 site. Due to technical issues a Bijell-1A well sidetrack is required (Bijell-1B), resulting in a delay to the start of the 180 day EWT, this has now been postponed to Q1 2014. Drilling of Bijell-2 appraisal well is ongoing and will be followed with two further appraisal wells. Early oil production could be resumed from Bijell-1B in Q1 2014. Expected EPF rates of 10,000 bbl of oil could be achieved by the end of 2014 through the tie in of three wells (Bijell-2, Bijell-4 and Bijell-6).
  • Rig availability: In order to efficiently progress the planned accelerated work stream we intend to employ 2 more drilling rigs than originally planned and work with 4 rigs by the end of the appraisal programs on the Akri Bijeel block.

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New Oil Find in Iraqi Kurdistan

Gulf Keystone notes today’s update by MOL Hungarian Oil and Gas Plc., the operator of the Akri-Bijeel Block in the Kurdistan Region of Iraq (in which Gulf Keystone has a 20 per cent working interest), on its extensive exploration and appraisal programme.

Bakrman-1 Exploration Well Discovery

Bakrman-1, the first exploration well to target the Bakrman structure on the Akri-Bijeel Block, has made a new Triassic discovery. This is the second discovery on the block following the Bijell discovery made in 2010.

Bakrman-1 spudded in May 2012, 32 km to the north-west of the Bijell-1 discovery well. The well was drilled to a total depth of 4,100 metres in the Kurra Chine B formation in the Triassic, following which a well testing programme commenced, targeting reservoir zones in the Jurassic and Triassic. Two open hole tests and three cased hole tests have been performed to date. According to the operator, the second open hole well test performed at 3,930-4,100 metres MD (measured depth) in the Kurra Chine B formation in the Triassic resulted in calculated daily flow rates of approximately 2,616 barrels of light (32 to 35 degrees API gravity) oil per day and a gas rate of approximately 5.86 million standard cubic feet per day. The well testing programme is ongoing and is expected to be completed in April 2013.

Gulak-1 Exploration Well

Gulak-1, the fourth exploration well to be drilled on the Akri-Bijeel block and the first exploration well to target the Gulak anticline, spudded in July 2012 and has been drilled 21 km to the east from the Bijell-1 discovery well and 5 km to the south from the Bekhme-1 exploration well to a total depth of 3,641 metres in the Kurra Chine B formation in the Triassic. The well test programme, consisting of five tests, has now been completed. In the course of the DST#4 performed at 2,385-2,420 metres MD in the Sargelu and Naokelekan formations in the Jurassic, minor inflows of between 22-30 degrees API oil were encountered. Following the completion of the DST#5, it is proposed that the well will be suspended.

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Gulf Keystone, MOL, Spud Gulak-1 Exploration Well

By John Lee.

Gulf Keystone notes today’s announcement by MOL Hungarian Oil and Gas Plc., the operator regarding the spudding of the Gulak-1 exploration well on the Akri-Bijeel block in the Kurdistan Region of Iraq.

Gulak-1 is the fourth exploration well to be drilled on the Akri-Bijeel block and the first exploration well to target the Gulak anticline at the extreme eastern end of the block.

The well is being drilled 21.4 km to the east from the Bijell-1 discovery well and 28.3 km to the east-southeast from the Bijell-3 (Aqra-1) appraisal well, which is also drilling ahead. Gulak-1 will target prospective intervals in the Jurassic and Triassic drilling to a planned total depth of approximately 3,658 metres in the Triassic Kurra Chine formation.

Gulf Keystone has a 20 per cent working interest in the Akri-Bijeel block, operated by Kalegran Ltd., a 100 per cent subsidiary of MOL Hungarian Oil and Gas Plc., which holds 80 per cent working interest in the block.

The operator’s P50 resource estimate for the Bijell discovery is 2.4 billion barrels of oil-in-place, while the ongoing 2012/13 exploration and appraisal programme is targeting existing and identified hydrocarbon prospects in the Akri-Bijeel block.

John Gerstenlauer, Gulf Keystone’s Chief Operating Officer commented:

Gulak-1 is part of the operator’s extensive exploration and appraisal programme on the massive Akri-Bijeel block and the fourteenth well to be drilled across Gulf Keystone’s four blocks in the Kurdistan Region of Iraq. In addition to three wells currently drilling on the Akri-Bijeel block (Bijell-3, Bakrman-1 and Gulak-1), the programme also includes the drilling of three additional appraisal wells (Bijell-2, Qalati-1 and Qandagul-1).

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