Iraq Kurdish Oilfield Output to Hit 55,000 bpd

Gulf Keystone Petroleum and partner Hungary's MOL have agreed to boost production from its Shaikan heavy oilfield in the Kurdistan region of northern Iraq, after reaching an investment plan with the semi-autonomous Kurdistan Regional Government.

Gross production capacity at Shaikan will be raised to 55,000 barrels per day over the next 12-18 months, up from around 35,298 bpd last year, with capital expenditure this year of $91 million on the field, Gulf Keystone said on Friday, Platts reported

It said the remainder of the $175-215 million required spending to achieve the 55,000 b/d production capacity is expected to be part of the 2019 investment plan.

The program at Shaikan includes workovers, a new well, facility improvements and plant debottlenecking.

Gulf Keystone operates the Shaikan license with a 75% working interest. Its partners are Hungary's MOL with 20% and Texas Keystone with 5%. The field has a current nameplate capacity of 40,000 bpd, and Gulf Keystone has previously described Shaikan's full potential production at around 100,000 bpd.

Shaikan has been contributing to the Kurdistan Regional Government's crude oil exports since November. Most of the field's crude is trucked to Fishkhabour on the Turkish border, where it is fed into KRG's export pipeline, while the remainder is sold domestically.

Gulf Keystone is currently building a short spur pipeline from its production facility-2 to the Atrush export line, which links to the main export oil line to Turkey. This will reduce trucking requirements and raise netbacks.