Significant operational progress has been made on the Shaikan block since the Shaikan-1 world-class discovery in 2009 to the ramp up of production and crude oil export sales levels of today.
The Shaikan block is situated about 85 km to the north-west of Erbil covering an area of 283 km². The Production Sharing Contract (“PSC”) for the Shaikan block was awarded in November 2007 to Gulf Keystone Petroleum International (Operator with the working interest of 75%), Kalegran Ltd. (100% subsidiary of MOL Hungarian Oil and Gas Plc. with 20%) and Texas Keystone Inc. (5%).
The Kurdistan Regional Government (“KRG”) has an option to nominate a third party interest of up to 15% in the Shaikan PSC and a further option to nominate a government interest of up to 20% following a commercial discovery.
Shaikan: A World-Class Discovery
- 6 August 2009 - Gulf Keystone announced the Shaikan discovery as a result of its first exploration well.
- January 2010 - Final Evaluation Report by Dynamic Global Advisors (“DGA”) on the Shaikan-1 discovery well. Click here
- January 2011 - Ryder Scott completed an additional third party analysis of the Shaikan-1 petroleum-initially-in-place Click here
- July 2012 - Gulf Keystone’s latest major upward revision of gross oil-in-place figures for the Shaikan field, as calculated by DGA. Click here.
- August 2012 - Shaikan was declared a commercial discovery Click here
- June 2013 - The Kurdistan Regional Government's Ministry of Natural Resources approved the Shaikan Field Development Plan Click here
- July 2013 – Shaikan commercial production commenced
- January 2014 – Export sales of Shaikan crude oil commenced Click here
- December 2014 – target of 40,000 bopd achieved Click here
On 27 April 2009 the Company spudded its first exploration well, Shaikan-1 and on 6 August 2009 it announced a significant discovery. In 2010, acquisition of 599 km² of 3D seismic data was completed over the Shaikan block with data processed during 2011.
Following completion of the successful five-well appraisal programme, Shaikan was declared a commercial discovery in August 2012.
In January 2013 the Shaikan Field Development Plan was submitted and gained approval from the Kurdistan Regional Government's Ministry of Natural Resources in June 2013, the Company then commenced commercial production operations and subsequently crude oil export sales.
Two production facilities capable of producing 40,000 barrels of oil per day ("bopd") are currently in operation at Shaikan. Shaikan is being developed in phases and future targets aim to see production levels increase to 110,000bopd as the FDP is implemented, until eventually reaching a plateau as full field development is realised. A field of Shaikan’s magnitude will require additional production facilities.
In July 2015 we gained access to the export pipeline and 100% of our crude oil is now trucked a distance of some 120 km to Fishkhabour on the Turkish border for injection into the international export pipeline, which runs to the port of Ceyhan on the Turkish coast.