Atrush Field Explained

Atrush Field
Location Map:Iraq
Coordinates:36.8633°N 43.4503°W
Coordinates Ref:[1]
Country:Iraq
Region:Dohuk
Location:Sheikan district
Offonshore:Onshore
Operators:TAQA (47.4%)
Partners:Kurdistan Regional Government (25%)

ShaMaran Petroleum Corp. (27.6%)

Discovery:April 13th 2011[2]
Start Production:July 3rd, 2017[3]
Oil Production Bbl/D:45000
Est Oil Bbl:296
Recover Oil Bbl:102.7
Formations:Jurassic fractured carbonate[4]

Atrush Field is a Jurassic fractured carbonate oilfield near Dohuk, Iraqi Kurdistan. It was discovered by the Consortium of General Exploration Partners. As of March 12, 2013, the Kurdistan Regional Government (KRG) has exercised its option to acquire a 25% Government Interest of the Atrush Field according to the PSC contract.[5]

General Exploration Partners (GEP) held 80% of Atrush and was in cooperation with Aspect Energy International, who owned 2/3 of GEP, thus Aspect Energy International had a share of 53,2%. Aspect Energy International sold its interest in GEP to TAQA for $600 mln,[6] which basically transferred Aspect's interest in GEP to TAQA. Shamaran's interest remained at 26,8% of Atrush, and the remaining 20% is held by Marathon Oil.[7]

In June, 2018 Shamaran Petroleum announced that it intends to purchase Marathon Petroleum's 15% share of the Atrush Block.,[8] with effect from Jan 1, 2018. ShaMaran will acquire all shares of MOKDV - Marathon's Dutch subsidiary for US$63m. ShaMaran will then sell 7.5% working interest to Taqa for US$33m. The sale is expected to close in the first quarter of 2019.[9]

Oil began flowing through the Atrush Central Production Facility on July 3, 2017. In September 2017, an agreement for the sale of Atrush oil was signed between TAQA, its partners and the KRG. Under the agreement, the KRG will buy oil exported from the Atrush field by pipeline at the Atrush block boundary. The quality of the oil will force a price adjustment of approximately $16/bbl lower than the dated Brent oil price. All local and international transportation costs will be an additional fee. This discount is based on the principles similar to other oil sales agreements in the Kurdistan Region of Iraq.[10]

Atrush Field Naming Conventions

In 2014 after a meeting of the Atrush Management Committee and the KRG Ministry of Natural Resources changes in terminology used with respect to activity in the Atrush Field were made:[11]

Wells

Atrush-1 (AT-1) Well

Atrush-1 (AT-1) well was successfully spudded on October 5, 2010. The well had a natural flow of 6,393 barrels of oil per day. General Exploration Partners discovered 726 meters of oil column and 120 meter netpay. The well has since been permanently abandoned [12]

Atrush-2 (AT-2) Well

Atrush-2 (AT-2) well was successfully spudded on May 23, 2012. The well had a flow of 42212 barrels of oil per day using a Submersible pump,[13] estimated to have been the highest flow ever in Iraqi Kurdistan.[14] The design of the DST Program, as well as the permanent completion, was managed by Daniel Riedel, Richard Sharpe, Damon Yarshenko, and Wes Whitman with key execution support provided by core contractors. AT-2 was completed for production in Q3 of 2016.

Atrush-3 (AT-3) Well

Atrush-3 (AT-3) well was believed the well spudded on 26 March 2013 but there is no information confirming this for now.[5]

AT-3 Well Summary

Atrush-4 (AT-4) Well

Drilled in 2014, Atrush-4 (AT-4) well is the second well to be drilled in support of the Phase One Facility.

AT-4 Well Summary

Chiya Khere-5 (CK-5) Well

Chiya Khere-5 (CK-5) well was completed in Q3 of 2015.[4]

Chiya Khere-6 (CK-6) Well

Chiya Khere-6 (CK-6) Phase 2 appraisal well has a total depth of 2,105 metres. The TAQA-operated well reached TD on November 5, 2014, after 36 operational days. Part of the eastern part of the Atrush block the well is located on the Chamanke C pad. This pad is also the location of AT-3. CK-6 is a directional well, drilled in SSE direction from the surface. CK-6 encountered the Jurassic age reservoir at a higher elevation (≈139 metres) than the nearby AT-3 well.[15] As of January 2019 the well is awaiting a work over to become an observation well during the heavy oil extended well test of AT-3.
The well was recompleted in February 2019 and came online for production in May 2019 at 4500oilbbl of oil per day.[16]

Well Testing

Chiya Khere-7 (CK-7) Well

Chiya Khere-7 (CK-7) appraisal and development well drilling operations commenced prior to September 19, 2017. CK-7 is located in the central area of the Atrush Block. The producing well, AT-2, is approximately 3 kilometres to the east, while AT-3 is 3.5 kilometres to the west. The well is most likely being drilled from the Chamanke E pad. The objectives are to add another producing well by appraising the Mus formation's commercial potential and to reduce the uncertainty in determining the depth of the medium to the heavy oil transition zone. The well is expected to reach the 1,575 metre Total Depth within 52 days, using the Romfor 25 drilling rig.[17]

Chiya Khere-8 (CK-8) Well

Chiya Khere-8 (CK-8) well was completed in Q3 of 2015[4]

Chiya Khere-9 (CK-9) Well

Chiya Khere-9 (CK-9) water disposal well, was drilled successfully as planned and is ready for water injection.

Chiya Khere-10 (CK-10) Well

Chiya Khere-10 (CK-10) well was drilled in June 2018[18] and tied into the facility in July 2018.[19]

Chiya Khere-11 (CK-11) Well

Chiya Khere-11 (CK-11) is a deviated infill production well, located on the Chamanke-G pad, that was spud on 3 January 2019, the Sargelu formation is the target.
The well was drilled to its final depth by mid-March, came online for production on May 10, 2019, produced at 5500oilbbl of oil per day (during July 2019)[20] and increased to 8500oilbbl of oil per day in September 2019.[21]

Chiya Khere-12 (CK-12) Well

Chiya Khere-12 (CK-12) is a 2,400 metre deviated infill production well, located on the Chamanke-E pad[21] that was spud in 2019, the well was brought on production on August 10, 2019.[22]
CK-12 was drilled to its final depth at the end of May 19, 2019, where the reservoir was found to be 25 metres deeper than the prognosis indicated. CK-12 well was left cased and suspended until a workover rig was used to complete CK-12 in July 2019. Production commenced on August 10, 2019. CK-12 is currently producing at a rate of 2000oilbbl of oil per day from the Mus Formation.[21]

Chiya Khere-13 (CK-13) Well

Chiya Khere-13 (CK-13) located on Chamanke-E, is a 2,340m deviated infill production well that was spud in June 2019,[20] drilled to TD by August 19, 2019, and brought on production on September 18, 2019, at a rate of 6000oilbbl of oil per day. This well encountered the target Formation at 23 metres lower than expected depth.[21] The failure by TAQA's development geologist, well operation geologist and the geological manager to accurately forecast formation depths is rumoured to be a sore point within the partnership.

Chiya Khere-14 (CK-14) Well

No mention of CK-14 has ever been publicly announced.

Chiya Khere-15 (CK-15) Well

Chiya Khere-15 (CK-15) is a deviated infill production well at the Chamanke-G drilling location. The well was spudded on October 5, 2019, and came online on December 8,2019.[21]

Heavy Oil Extended Well Test (HOEWT)

During 2018 the operator installed heavy oil well testing equipment. The equipment will provide 5000oilbbl of oil per day additional processing capacity at the Chamanke C pad, where AT-3 is located. Heavy oil production to should begin in February 2019.
In fact, the HOEWT was delayed until mid-April.,[20] the well was brought on production in Q3 2019.[22]

Chiya Khere-16 (CK-16) Well

CK-16, a water disposal well, supplements well CK-9.[23] The well reached TD on May 20, 2022,[24] and was completed over the Sarki reservoir in July 2022 and water disposal also commenced in July 2022[25]

Chiya Khere-17 (CK-17) Well

The drilling and completion, on time and under budget, of a side-track CK-17 well (from Pad A) to recover from the upper Jurassic Sargelu reservoir was spud on April 1, 2021.[26] In July 2022 the well underwent a workover operation to increase production. It was expected to be completed by August 2022.[27]

Chiya Khere-18 (CK-18) Well

According to a post on Linkedin.com by TAQA's Drilling and Completions Manager during the week of September 6, 2022, CK-18 (Pad G) successfully reached TD as the first horizontal well in the Atrush block. The manager also stated that the horizontal drain length was 1016 metres. The Atrush production well CK-18, spudded from the Chamanke G Pad, was drilled to total depth in September 2022 with a 950m section drilled horizontally through the Lower Jurassic Mus formation. The well is currently being sidetracked and is expected to be recompleted during 2023.[28]

Chiya Khere-19 (CK-19) Well

In October 2022 the Atrush production well, CK-19, was spudded from the Chamanke C Pad. Targeting the Upper Jurassic Sargeluformation, the well is forecast to commence production in Q1 2023.[28]

Chiya Khere-20 (CK-20) Well

The CK-20 production well was drilled from the Chamanke E Pad in February 2023. The well was drilled to a total depth of 1,753m and completed over the Upper Jurassic in April 2023.[29]

Future wells

Drill and complete additional production wells.[30] One of the wells is to be drilled from the Chamanke-A pad several hundred meters to the west of AT-1. The other to be drilled from Chamanke-G pad landing south east of AT-1 and south west of CK-5.The well from Chamanke-A indicated that plans to build Chamanke-D pad to the west of Chamanke-A have been scrapped. This is reportedly due to the inability of the TAQA land negotiation team to secure the property and the incompetence of the facilities construction team to build a pad before 2024. There was speculation that these wells will not be drilled in 2021 or 2022 as TAQA reportedly dismissed their operations geologist, whose presence would be mandatory during drilling. This speculation proved to be false with the drilling of 2 wells in 2022. In fact Atrush capital expenditures for 2022 planned at $116 million ($32 million net to ShaMaran). This capital program includes drilling and completing three development wells, including one water injection well.[31]

Producing Wells

There are a total of eleven producing wells: Atrush-2, (“AT-2”) Chiya Khere-5 (“CK-5”), Chiya Khere-7 (“CK-7”), Chiya Khere-8 (“CK-8”) and Chiya Khere-10 (“CK-10”).[32] In 2019, Chiya Khere-6 (“CK-6”), Chiya Khere-11 (“CK-11”), Chiya Khere-12 ("CK-12"), and Chiya Khere-13 ("CK-13") have also been added as production wells.[22] In December 2019, Chiya Khere-15 ("CK-15") was also listed as a production well.[33] Well CK-17 has been added as a production well. Atrush production well CK-18, in September 2022. In October 2022 the Atrush production well, CK-19 was spud.[31]

Wells Pads

Facilities

A 30000oilbbl of oil per day Phase 1 facilities has been completed. As of September 29, 2017, the facility has achieved a regular daily export of more than 22000oilbbl of oil equivalent.[10] Facility production is expected to increase to 30000oilbbl of oil equivalent per day during 2017.[10]
In June 2018 Shamaran Petroleum reported a partial blockage of the production facility's heat exchanger. Sediment samples were analyzed and it was determined that the blockage was caused by salt. The most probable source of the salt might be drilling fluid losses from the drilling of CK-5 and AT-2. The heat exchanger was cleaned. A trial process of injecting freshwater at the CK-5 wellhead and separating saltwater out at the production facility's separator have significantly reduced the quantity of salt in the crude to be processed for export.
As of June 2018, approximately 20000oilbbl of oil per day of processed oil is being exported. Water injection at the wellhead will continue while gradually increasing production as the field personnel closely monitor the facility. Water injection is limited due to the small daily disposal capacity, once the CK-9 water disposal well is completed in the second half of 2018, the capacity will increase.[34] The average daily production for 2018 was about 22200oilbbl of oil per day, the rate at the end of December 2018, was 27500oilbbl of oil per day.
During 2019, debottlenecking the 30000oilbbl of oil per day facility will occur.

Average production for November 2019 was 43360oilbbl of oil per day.[16]

An Early Production Facility (EPF) was installed at the Chamanke E pad in Q3 2019. The EPF has a capacity of 10,000 bbl per day.[35]

Pipeline

Monthly Production Data

+Monthly Production DataDate Volume (bbl/d)Volume (m3/d)Comment
July 2017 4800oilbbl
August 2017 18300oilbbl
September 2017 21400oilbbl
October 2017 13300oilbbl Facility shut down to address production constraints
November 2017 25400oilbbl
December 2017 26300oilbbl
January 2018 26600oilbbl
February 2018 23900oilbbl
March 2018 20200oilbbl Back-produced salt plugs facilities
April 2018 11900oilbbl
May 2018 15100oilbbl
June 2018 20100oilbbl
July 2018 19100oilbbl Shut down to tie-in CK-7, CK-10
August 2018 21400oilbbl Frequent pipeline outages
September 2018 24500oilbbl Flushed stripper column
October 2018 26800oilbbl
November 2018 28200oilbbl
December 2018 27500oilbbl CK-10 ESP failure
January 2019 26900oilbbl
February 2019 23500oilbbl 7day Export Pipeline Shutdown
March 2019 28100oilbbl
April 2019 29000oilbbl
May 2019 28600oilbbl Reboiler Flushing and CK-8 ESP Failure
June 2019 27100oilbbl CK-8 ESP Replacement
July 2019 33900oilbbl[37] CK-8 ESP Online
August 2019 35300oilbbl[38] CK-12 Online
September 2019 30285disp=tableNaNdisp=table
October 2019 38040oilbbl [39]
November 2019 43360oilbbl[40]
December 2019 43400oilbbl
January 2020 47800oilbbl
February 2020 45700oilbbl
March 2020 46100oilbbl
April 2020 46800oilbbl
May 2020 46500oilbbl
June 2020 47000oilbbl
July 2020 47000oilbbl
August 2020 46100oilbbl
September 2020 44900oilbbl
October 2020 43600oilbbl
November 2020 39800oilbbl
December 2020 38700oilbbl
January 2021 37600oilbbl
February 2021 37700oilbbl
March 2021 39100oilbbl
April 2021 42100oilbbl
May 2021 41900oilbbl
June 2021 34500oilbbl
July 2021 42100oilbbl
August 2021 41400oilbbl
September 2021 40100oilbbl
October 2021 37800oilbbl
November 2021 28000oilbbl
December 2021 39700oilbbl
January 2022 38400oilbbl
February 2022 39000oilbbl
March 2022 39000oilbbl
April 2022 39900oilbbl
May 2022 38500oilbbl
June 2022 37100oilbbl
July 2022 36500oilbbl

Pre-2019 numbers for barrels are rounded down to the nearest 100 barrels per day.[41]
2019 and forward data without specific citations were generated using software to evaluate published charts. These numbers are estimates and could be subject to change.[42]

Estimated Reserves (December 31, 2017)

PROVED PROVED TOTAL PROBABLETOTAL PROVED POSSIBLETOTAL PROVED,
DEVELOPEDUNDEVELOPEDPROVED& PROBABLE PROBABLE & POSSIBLE
Light/Medium Oil (Mbbl)(1)
Gross(2) 4,211 3,0267,23712,38519,62212,02031,641
Net(3) 2,975 1,673 4,6486,34710,9963,999 14,995
Heavy Oil (Mbbl)(1)
Gross(2)- 2822827451,0266851,711
Net(3)- 181181394575236811
[43]

(1) The actual split between Light/Medium Oil and Heavy Oil is uncertain.

(2) Based on the Shamaran's 20.1 percent share.

(3) Based on Shmaran's share.

Estimated Contingent Resources (December 31, 2017)

! scope="col" colspan="3"
Light & Medium Oil (MBBL)(3)Heavy Oil (MBBL)(3)Naural Gas (MMCF)
Contingent Resources(1)(2) Gross Shamaran Interest Gross Shamaran Interest Gross Shamaran Interest
100% Gross(4)Net(5)100% Gross(4)Net(5)100% Gross(4)Net(5)
Low Estimate (1C)67,79613,627N/A106,680 21,479N/A25,4775,121N/A
Best Estimate (2C)68,75613,820N/A227,41245,710N/A46,8959,426N/A
High Estimate (3C)76,60615,398N/A372,875 74,948N/A73,47714,769N/A
Risked Best Estimate55,00411,056N/A181,93036,568N/A2,343471N/A

Notes and References

  1. Web site: Archived copy . 2013-02-03 . 2016-03-21 . https://web.archive.org/web/20160321134820/http://www.shamaranpetroleum.com/i/pdf/CorporatePresentation_Sept2012.pdf . dead .
  2. Web site: ShaMaran Petroleum Corp - press-releases . 2013-02-03 . https://web.archive.org/web/20131001201837/http://shamaranpetroleum.mwnewsroom.com/press-releases/shamaran-announces-major-oil-discovery-at-atrush-p-tsx-venture-snm-201104130689394001 . 2013-10-01 . dead .
  3. Web site: ShaMaran Petroleum Corp - press-releases . 2017-07-25 . https://web.archive.org/web/20170807161616/http://shamaranpetroleum.mwnewsroom.com/press-releases/oil-production-in-atrush-started-tsx-venture-snm-201707031098541001 . 2017-08-07 . dead .
  4. Web site: Archived copy . 2018-06-11 . 2018-06-12 . https://web.archive.org/web/20180612141625/https://www.shamaranpetroleum.com/site/assets/files/3675/2017-05-15-cp.pdf . dead .
  5. Web site: ShaMaran Petroleum Corp - Shamaran 2012 Year End Financial and Operating Results . 2013-03-29 . https://web.archive.org/web/20130331005149/http://shamaranpetroleum.mwnewsroom.com/press-releases/shamaran-2012-year-end-financial-and-operating-res-tsx-venture-snm-201303150860336001 . 2013-03-31 . dead .
  6. News: TAQA buys stake in Iraqi Kurdistan oil block for $600 mln. Reuters. 2013-01-02.
  7. Web site: ShaMaran acquires Larger Stake in Atrush.
  8. Web site: Archived copy . 2018-06-11 . 2018-06-12 . https://web.archive.org/web/20180612140305/https://shamaranpetroleum.com/site/assets/files/32005/2018-06-04-nr-snm.pdf . dead .
  9. Web site: Archived copy . 2019-01-30 . 2019-01-30 . https://web.archive.org/web/20190130221111/https://www.shamaranpetroleum.com/site/assets/files/72240/190114_corporate_presentation_january_2019.pdf . dead .
  10. Web site: ShaMaran Petroleum Corp - press-releases . 2017-10-03 . https://web.archive.org/web/20171002192604/http://shamaranpetroleum.mwnewsroom.com/press-releases/shamaran-announces-atrush-oil-sales-agreement-signed-tsx-venture-snm-201709291102921001 . 2017-10-02 . dead .
  11. Web site: Archived copy . 2016-03-17 . 2014-12-22 . https://web.archive.org/web/20141222130039/http://www.shamaranpetroleum.com/i/pdf/2014-Sep-Pareto-Securities-Oil-Gas-Conference.pdf . dead .
  12. Web site: ShaMaran Petroleum Corp. - Atrush Block - Overview . 2013-02-04 . https://web.archive.org/web/20130303205451/http://www.shamaranpetroleum.com/s/Atrush.asp?ReportID=420604 . 2013-03-03 . dead .
  13. Web site: Reuters. 5 July 2021. 16 February 2013. https://archive.today/20130216175102/http://www.reuters.com/article/2012/09/13/idUS200698+13-Sep-2012+PRN20120913. bot: unknown.
  14. Web site: ShaMaran strikes it rich at Atrush block. Oil & Gas Middle East.
  15. Web site: Taqa flows oil at CK-6 well in Kurdistan | Oil and Gas Technology.
  16. Web site: Shamaran atrush update. 12 December 2019. shamaranpetroleum.com. 28 August 2023.
  17. Web site: ShaMaran Petroleum Corp - press-releases . 2017-09-20 . https://web.archive.org/web/20170920191500/http://shamaranpetroleum.mwnewsroom.com/press-releases/shamaran-atrush-development-update-spud-of-ck-7-tsx-venture-snm-201709191102449001 . 2017-09-20 . dead .
  18. Web site: Archived copy . 2019-01-31 . 2019-01-31 . https://web.archive.org/web/20190131201317/https://www.shamaranpetroleum.com/site/assets/files/32011/2018-06-cp-snm.pdf . dead .
  19. Web site: Archived copy . 2019-01-31 . 2019-01-31 . https://web.archive.org/web/20190131201315/https://www.shamaranpetroleum.com/site/assets/files/49436/180902-corporate-presentation-september-2018.pdf . dead .
  20. Web site: Shamaran Second Quarter 2019 Update . ShaMaran Petroleum . 12 December 2019.
  21. Web site: Q3 ShaMaran petroleum corp. Financial Report . ShaMaran petroleum corp. . 12 December 2019.
  22. Web site: Welcome to ShaMaran Petroleum Corp. Website. ShaMaran Petroleum Corp..
  23. Web site: Welcome to ShaMaran Petroleum Corp. Website .
  24. Web site: Welcome to ShaMaran Petroleum Corp. Website .
  25. Web site: Welcome to ShaMaran Petroleum Corp. Website .
  26. Web site: Shamaran Second Quarter 2021 Update . ShaMaran Petroleum . 20 August 2021.
  27. Web site: Shamaran Second Quarter 2022 Update . ShaMaran Petroleum . 3 November 2022.
  28. Web site: Welcome to ShaMaran Petroleum Corp. Website .
  29. Web site: Shamaran Second Quarter 2023 Update . ShaMaran Petroleum . 26 October 2023.
  30. Web site: Pareto Securities' - 16th annual E&P Independents Conference . ShaMaran Petroleum . 20 August 2021.
  31. Web site: Welcome to ShaMaran Petroleum Corp. Website .
  32. Web site: Welcome to ShaMaran Petroleum Corp. Website. ShaMaran Petroleum Corp..
  33. Web site: ShaMaran Atrush Update. Website. ShaMaran Petroleum Corp..
  34. Web site: Archived copy . 2018-06-11 . 2018-06-12 . https://web.archive.org/web/20180612140910/https://shamaranpetroleum.com/site/assets/files/32941/2018-06-08-nr-snm.pdf . dead .
  35. Web site: Annual information form For the year ended December 31, 2021. 25 April 2022. shamaranpetroleum.com. 28 August 2023.
  36. Web site: Archived copy . 2017-09-20 . 2017-09-21 . https://web.archive.org/web/20170921000453/http://www.shamaranpetroleum.com/i/pdf/2017-09-11-CP.pdf . dead .
  37. Web site: ShaMaran Petroleum Q2 results . ShaMaran Petroleum . 12 December 2019.
  38. Web site: ShaMaran Corporate Presentation September 2019 . ShaMaran Petroleum . 12 December 2019.
  39. Web site: ShaMaran Petroleum Q3 results . ShaMaran Petroleum . 12 December 2019.
  40. Web site: SHAMARAN ATRUSH UPDATE . ShaMaran Petroleum . 12 December 2019.
  41. Web site: BOPD - Schlumberger Oilfield Glossary.
  42. Web site: ShaMaran Town Hall Presentation April 2022 . ShaMaran Petroleum . 3 November 2022.
  43. Shamaran Announces 25% Increase in Atrush Reserves Estimates. 2018-02-15.