Productive Capacity
The Demir Dagh-7 ("DD-7") well will be tied into the Demir Dagh production facilities in the coming weeks. Once the DD-7 tie-in is complete, the Demir Dagh-2, Demir Dagh-4 and DD-7 wells will represent gross (100%) productive capacity exceeding 15,000 bbl/d. The DD-3 well is expected to be tied into the production facilities in early 2015 with tie-ins of the Demir Dagh-8, DD-9, DD-10 and DD-11 wells to follow subject to positive drilling and testing results.
Export Sales Infrastructure
Installation of a 1.2 kilometre 16" connecting line from the Demir Dagh production facilities to the KRI-Turkey pipeline is progressing and installation is expected to be completed in early 2015.
Production and Sales
Upon the request of the Ministry of Natural Resources of the KRI, Oryx Petroleum has commenced trial deliveries of crude oil by truck from Demir Dagh to the Khurmala entry point of the KRI-Turkey pipeline. If such trials are successful Oryx Petroleum expects to increase such deliveries as an accelerated interim measure prior to the completion of the direct tie-in to the KRI-Turkey pipeline. Commercial terms are in the process of being negotiated with the Ministry of Natural Resources of the KRI.
Since sales commenced in June 2014, and due to the complex and evolving regional supply-demand dynamics for crude oil, the Group has experienced periodic disruptions to local sales of crude oil from the Demir Dagh field to third party marketers. Since late October, there have been no sales from Demir Dagh into the local market with production shut-in for most of the period. The situation is expected to normalize over the coming months but the Group is not able to say at this time when the sales of crude oil will resume on a consistent basis in the domestic market of the KRI.
(Source: Oryx)
Comments are closed.