Gulf Keystone Petroleum is the operator of the Shaikan Field, situated about 60 km to the north-west of Erbil covering an area of 283 km². The Company has a Production Sharing Contract with the Ministry of Natural Resources and has an 80% working interest in the Shaikan licence.
Production facility with nameplate capacity of 20,000 bopd is expected to increase to 27,500 bopd in 2020. Since December 2019, all oil produced is exported via pipeline. Five production wells are currently tied-in to PF-1, with no artificial lift.
- SH-10 & SH-11
Production facility with a nameplate capacity of 20,000 bopd is expected to increase to 27,500 bopd in 2020. Since July 2018 all oil produced is exported via pipeline. Five production wells are currently tied-in to PF-2, with one on artificial lift.
Shaikan – A giant field with proven production track record
The Shaikan Field is one of the largest oil discoveries in the Kurdistan Region of Iraq and has been in production since July 2013. To date, the field has produced in excess of 70 Million Stock Tank Barrels and has estimated 2P reserves of 578 Million Stock Tank Barrels, as at 31 December 2019. GKP has a vision to grow production to 110,000 bopd over the coming years, with a near-term target of 55,000 bopd in Q3 2020.
In June 2018, GKP and MOL recommenced investment into Shaikan. The expansion activities underway will see production increase to 55,000 bopd with longer-term potential to increase output to 110,000 bopd, by way of a phased investment programme.
- Located c.60km north-west of Erbil in the north-west Zagros Fold-belt
- One of the largest fields in Kurdistan by reserves and production
- Cumulative production to date of over 70 MMstb
- Steady production; pressure decline in line with predictions
- Significant growth potential
- Material oil volumes in the Cretaceous, Jurassic and Triassic formations
- Current production from Jurassic only
- Staged approach to de-risk field long-term potential
- Low production costs – US$3.9/bbl
- Scope to optimise as the field is further developed
Key information (gross figures)
- Gulf Keystone interest: 80%
- Partner: MOL 20%
- Discovered: August 2009
- Production start: July 2013
- 2020 prod. guidance: 43,000 – 48,000 bopd
- 1P reserves: 194 MMstb
- 2P reserves: 578 MMstb
- 2C resources: 239 MMstb
- Petroleum cost pool: c.US$500m
Shaikan production growth
During the first half of 2019, Gulf Keystone made significant progress on a number of fronts. Tubing workovers on SH-1 and SH-3 were completed, resulting in material production uplift. The SH-12 well, the first well drilled in over four years, was spud in June with initial results in line with prognosis; current production rates from the well are c.4,000 bopd. The second well in the drilling campaign, SH-9, will help inform the long-term field gas management plan.
The planned maintenance and debottlenecking shutdown at PF-2 was completed in October 2019. The PF-1 export pipeline, which links PF-1 to the main regional export pipeline, was completed in December 2019, marking the end of export by trucking from the Shaikan Field – with benefits to safety performance, lower environmental impact and improved netbacks.
Gulf Keystone achieved gross average production of 32,883 bopd for 2019, and has announced 2020 production guidance of 43,000 – 48,000 bopd, a c.30% year-on-year increase.
December 2019 – Start of PF-1 export via pipeline
October 2019 – PF-2 planned shutdown for maintenance and debottlenecking
June 2019 – PF-1 planned shutdown for maintenance and debottlenecking
May 2019 – SH-3 workover completed
February 2019 – SH-1 workover completed & export pipeline shutdown
Reserves and resources summary as at 31 December 2019
|Gross field oil reserves (MMstb)||Gross field oil resources (MMstb)|
Note: The table above is a GKP estimate. GKP updated values from ERC Equipoise – CPR August 2016 and confirmation letter dated April 2017. CPR volume estimates of 615 MMstb as at 31 December 2016, adjusted by GKP for 12.9, 11.5 and 12.0 MMstb gross production in 2017, 2018 and 2019 respectively.
Shaikan field development plan
- Staged approach to de-risk long-term potential
- Revised FDP submitted in May 2019 – in discussions with MNR to reach approval
(1) Sanction timing of phases from 75,000 bopd & gas re-injection and beyond remain to be confirmed following FDP approval