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Exploration Activities
• Six exploration wells were spudded in 2014 resulting in four discoveries.
• Block 9, Faihaa-1X well in Iraq is the country’s largest oil discovery in the last 10 years.
• Three exploration discoveries in Abu Sennan, Egypt.
• The Shahd-4 development well at ERQ, Egypt with a deeper exploration target resulted in gas discovery
tested at 25 mmboe.
• 509.2 mmboe proven plus probable working interest reserves added post the discovery in Block 9.
Exploration Drilling
2014’s programme included drilling five exploration wells in Egypt and one in Iraq – the first exploration drilling
by Kuwait Energy in that country. Four out of the six exploration wells discovered commercial hydrocarbons.
One of them in Burg El Arab, Egypt, failed to encounter hydrocarbons in the exploration targets but was later
recompleted to produce from an already known development zone.
World class giant oil field discoveries were made at the Faihaa-1X exploration well in Iraq, Block 9. The first, in
October 2014 in the Mishrif formation, resulted in a flow rate of circa 2,000 BOPD on 32/64 inch choke. The
second discovery followed shortly afterwards in December 2014 in the Yamama formation, resulting in oil flow
rates of circa 8,000 BOPD on 64/64 inch choke. The asset is adjacent to super giant oil fields, largely de-risked
and near existing infrastructure. Early production and further appraisal drilling are planned for 2015/16.
In Abu Sennan, Egypt, a number of discoveries disclosed more commercial volumes accumulated in the Abu
Roash and Kharita formations. The Alam El Bueib formation, which is highly productive in the region was also
successfully discovered and tested via the ASH-1X exploration well.
In addition to the six exploration wells, the Shahd-4 development well was drilled in East Ras Qattara, Egypt,
with a deeper Jurassic exploration target. This resulted in an exploration discovery from the Wadi Al Narun
formation, and was tested with 25 mmscf/d on maximum choke size with condensate to gas ratio 95 bbl/mmscf.
This confirmed the potential of the rich condensate Jurassic accumulations across the whole concession area.
The Group’s five-year exploration success rate is 46%* from 2010 to 2014 inclusive. The finding cost per barrel
was 0.47 US$/boe* over the same five-year period.
*Figures are subjected for further revision in 2015 to accommodate results of ASH-1X discovery.
Geology, Geophysical and Engineering Studies
Iraq
In the Siba field, we acquired 280 sq. km of 3D seismic data and processed it for Pre-Stack Time Migration
(‘PSTM’). Interpretation of the processed seismic volume and integration with the appraisal well data is
now under way. The Siba-4 appraisal well has been drilled to the target depth and is being completed.
In Block 9, Faihaa-X1, an exploratory well is currently carrying out a coring operation within the Yamama
formation. Earlier, a shallower reservoir in the Mishrif formation was also extensively cored in this well.
Drilling results have so far been highly encouraging and we are currently updating production forecasts for
the field with new well test results and latest volumetrics.
Egypt
Efforts are underway in the Yusr field to understand the impact of water flooding. A 3D static sector model
was completed for the North Yusr field during the year and simulation is also currently in progress.
We are conducting a comprehensive programme to screen all wells in Egypt for work over potential to
optimise production performance.
Yemen
In Block 49, we completed the acquisition and processing of 240 sq. km of 3D seismic data and are currently
interpreting the final processed volume.
In Block 82, seismic work is being carried out to acquire about 280 km of high density 2D data.
In Block 5 in the Al-Nasr field, we completed a 3D static model and simulation is currently in progress. We
are also conducting a comprehensive programme to screen all wells in Al-Nasr for work over potential to
optimise the field performance.
Overall
Kuwait Energy continues to employ the latest and most appropriate software, data interpretation and
management tools to handle its growing technical challenges and database needs. It has also successfully
mapped the competencies of its employees within the Technology department and the rest of the
organisation. This exercise will prove useful for designing employee skills development and incorporating
training courses and conferences.