Gulf Keystone resumes Shaikan field production growth plan

Gulf Keystone Petroleum Ltd has resumed growth plans to ramp-up gross oil production towards 55,000 b/d in Shaikan field, about 60 km to the north-west of Erbil covering an area of 280 sq km in the Kurdistan Region of Iraq.

Remaining expansion activity includes completion of SH-13, which was suspended last year, drilling SH-I, the final well in the programme from the same pad, and installing electric submersible pumps in two existing wells.

Workstreams have begun, and the company is targeting to restart drilling of SH-13 in this year’s third quarter, subject to managing the continuing impact of COVID-19 on the movement of people, services and equipment, said Jon Harris, chief executive officer.

Average gross production guidance for 2021 remains unchanged at 40,000-44,000 b/d, with the increase in gross production towards 55,000 b/d expected to occur in first-quarter 2022.

Remaining capex required to deliver the program is estimated to be US$40-45 million net, resulting in total 2021 capex of US$55-65 million net.

Gulf Keystone is operator in the Shaikan licence (80%) with partner Kalegran BV (20%), a subsidiary of MOL Hungarian Oil & Gas Plc.

Source: Oil & Gas Journal