Oil Searchs activities in Yemen 20 September 2005 Presented by Peter Botten, Managing Director, and Jon Pattillo, Yemen Asset Manager
International diversification Oil Search commenced programme of measured international diversification in 2000, to augment exploration activity in PNG Middle East / North Africa was selected as focus area. Required criteria for…
Why Yemen World class petroleum system success rates 30% Relatively under explored petroleum basins, recent discoveries and new developments Access to good acreage (but getting more competitive) Low capex and opex…
Building of Yemen Portfolio 2000 acquired 80.75% interest in Block 15, offshore Yemen. Farmed down to Kufpec. Current interest is 52.5%, operator 2003 awarded interest in Block 35, located in Masilah Basin, with SiPetrol (Chile) and Saba…
Sanaa, Yemen Sanaa Republic with democratically elected President Population 20 million Relatively mature oil industry with good infrastructure Oil exports primary source of national income: 280,000 300,000 bopd World-scale…
Yemen current assets Masilah Basin Play Fairway 120,000bopd Pipeline Marib-Shabwah Basin Play Fairway 250,000bopd Pipeline Interests in the two major producing basins in Yemen: Masilah Basin Marib/Shabwah basin…
Nabrajah Block 43 Oil Search played a key role in the Nabrajah oil field discovery Small Qishn sandstone accumulation overlying deeper gas and oil field in fractured granitic Basement Basement/Kohlan tested 10,000 bopd
Nabrajah Block 43 - Qishn Production from Qishn commenced in July 2005 from Qishn sandstone 16 months after discovery Development comprises completion of 4 wells for production, water injection well, construction of Central Production…
Nabrajah Basement Appraisal Forward Program 2005-2006: Block 14 4 appraisal wells initially planned (Nab-8 to Nab-11) Nabrajah Nabrajah-8 is planned to drill 1,000 metres into Basement. Total depth 3,422 metres. Spudded 6…
Nabrajah Basement Appraisal Basement reserves based on Nab-5 well only: 40-70 mmbbl range best estimate Key uncertainties (risk) in reserve estimation are: Ultimate height of producible oil column Lateral/vertical connectivity…
Nabrajah Development Milestones July 2005 - Phase 1: Pre-CPF production started (3,500 bopd, Qishn) (2 Qishn prod + 1 Qishn WI) Oct 2005 Phase 2a: CPF start date (10,000 bopd, 30,000 bfpd, Qishn) Dec 2005 Phase 2b: Gas injection…
Nabrajah-type Basement Reservoir Granite forms core of horst and tilted fault blocks In the Masilah basin the granite appears to be naturally (joints) and tectonically fractured (faults) Effective Porosity 0.01% Aerial exposure in the…
Analogue Basement Field Sunah Field Block 14 Sunah Field Basement reserves estimated at 60-200 mmbbl after 10 years of production: S-4 well has produced over 30 mmbbls No Basement OWC seen in field Proven oil column 600m TVD…
Analogue Basement Field Kharir Field Block 10 Block 10 producing 30,000 bopd: 80% comes from the Basement (4 wells) Recent KH A210 well flowed 7,000 bopd; 500m oil column Depth of deepest open fractures has not yet been found in…
Yemen Generalised Fiscal Terms PSC based system Royalty on production Cost oil 50% Profit oil 30% Cost recovery 50- 75% Yemen remains attractive compared to peer group MENA countries Competitive Bid Rounds tightening commercial terms
Block 43 Fiscal Terms Royalty: - < 12,500 bopd 3% - 12,500 25,000 bopd 4% - 25,000 50,000 bopd 6% - 50,000 100,000 bopd 8% - 100,000 bopd 10% Cost oil = 50% of oil after royalty Contractor can recover 100% of operating costs and 50% of…
Block 43 Entitlements When reporting production, Oil Search intends to book net entitlements Based on 28.3% working interest, net entitlement is expected to be approximately 16% in early years falling to approx 12% (note that this is…
Block 15 Energy Searcher contracted for 2 Ras Ghashwah-1X Sarar-1X Recovered 1700 litres Masilah-1X wells + options Recovered 38 API oil from 45 API oil from Oil and Gas shows fractured Eocene limestone Cretaceous sands Hami-1X…
Block 35 Drilled Al Ahkaf-1 well 2004/5 Qishn horizon Tested Saar carbonates Water wet Reviewing implications of well result on remaining potential of Al Ahkaf Source kitchen block Al Ahkaf-1 location A number of higher risk leads…
New Yemen Exploration Blocks Block S2: Masilah OMV Habban -1 Basin Play New Basement Fairway Discovery 120,000bopd Pipeline Marib-Shabwah Basin Play Fairway 250,000bopd Pipeline The continuing trend of oil…
Blocks 3 and 7 Blocks 7 (34%) and 3 (60%) will be operated by OSH OSHs strategy in the Shabwah basin is to capture acreage containing untested Basement structures as well as plays already proven within the basin OMVs recent Habban-1…
Block 74 Blocks 74 (34%) will be operated by OSH Block 74 is considered similar to the geological setting of Block 43 The area is lightly explored with potential for basement plays and conventional Qishn/Saar/Kholan plays Potential mean…
Other MENA Assets Successfully acquired Block 18 in Libya in EPSA IV Bid round East Ras Qattara Block Egypt Actively pursuing new business opportunities in the region: Production focus development/exploration enhancement opportunities…
Libya Area 18 Libya EPSA IV award: Area 18 (30%) Petrobras operator (70%) Commitment 2,000km 2D & 500 sq km 3D & 1 well Seismic acquisition planned for 1Q06 Well in 2007 3 major leads Lead size 150-450 mmbbl potential OSH…
Egypt Egypt East Ras Qattara Concession Yidma (1971) Bur El Arab (1996) Res : 2.0mmbo OSH 49% non operator Res : 27mmbo Alamein (1966) Res : 80mmbo Targeting Bahariya Fm Horus(1995) Res : 6.0mmbo structural traps (mean…
MENA Asset Review Libya Egypt Dubai Office Yemen September 2005
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