Kekük Field Summary2012

Kerkük FieldGeological Summary _

Khurmala, Avanah and Baba Domes

• 250 km north of Baghdad

• Discovery date : 1927

• STOIIP :38,600 MM bbl

• Producing Since : 1934

• Cumulative Production

• as of 01/01/2007 : 13,255 MMbbl

• Current Production :350 M bbl/d

• NW-SE trending 100km X 3.5km

• 432 well have been drilled

• 197 current producing

• Remainder are either shut-in or injection wells

• Once the oil is extracted from the ground, it is sent via the Kirkuk-Ceyhan Oil Pipeline to the Turkish port city of Ceyhan, 

Minimum Work in 1st Round

• Drill 25 new wells

• Workover 80 wells

• Stimulation 100 wells

• Rehabilitation of degassing station

• 3D seismic aquisition

• G & G studies

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Bid not accepted

Status of Kerkük

From KRG point of View• Article 1 item 16 Current Field:

petroleum field that has been in commercial production prior to 15th August 2005

• KRG and Federal Government must jointly manage Current Fields provided that KRG shall have proportional role on FCOG and a partner in INOC

• Federal Government must not practice any new Petroleum Operations in the disputed territories without approval of KRG

• The Kurdistan Regional Government (KRG) has yet to be consulted about the negotiations.

• The Ministry of Natural Resources warned that current activities risk breaching the constitution, saying, “The Kurdistan Regional Government requires the federal Oil Ministry and the North Oil Company to respect the country’s constitution and sit down soon with all the relevant parties to determine how best to enhance and revitalize the present Kirkuk fields, so that the people of Iraq will benefit from the extra revenues in a timely manner, as the constitution obliges.”

From Baghdad point of View• The article 140 of the constitution defines

the status of Kerkük

• 1st bidding round Kerkük was on the list but the bid was not accepted by PCLD

• In 22 July 2008 the Election law article 24 says Kerkük should be managed by Arap-Tukmen and Kürts

• The statement points to Article 112 of the constitution which specifies that the Iraqi government must work in conjunction with regional and provincial governorates in managing fields that were in production at the time the constitution was approved in 2005.

• “However, Article 115 provides the exclusive right to the regions and governorates to manage all future fields — that is, the undeveloped discoveries and unexplored structures,” the statement adds.

• The ministry released the constitutional reminder in response to news that the state-owned North Oil Company was in the process of signing an agreement with BP for increased production at the Kirkuk oil field.

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Kar Group

• KAR was established in 1999 to organize a number of a privately owned Iraqi companies in different business sectors.

Over the past two decades, KAR companies were ranked as some of the most succesful firms in Iraq in the annual

listing of the Chamber of Commerce

• On July 18, 2009, the first oil from the Khurmala Dome Central Process Station was processed and transported by

pipeline to supply the new 20,000 barrel per day Erbil Refinery.

• The Khurmala Dome is the northern most dome of the Kirkuk oil field structure. The Dome is approximately 20

kilometers by 8 kilometers and lies fully on the territory of Erbil Governorate.

• During a meeting on November 24, 2008, between Kurdistan Regional Government Prime Minister Nechirvan

Barzani and Iraqi Minister of Oil Dr. Hussein Al-Shahristani, it was jointly decided that the Khurmala Dome would

be developed and operated to supply oil for the Erbil Refinery.

• KAR Oil & Gas Ltd. was chosen to build and operate the facilities.

• In December 2004, KAR Oil & Gas was awarded an engineering and procurement contract by the Iraqi Ministry of Oil

State Company for Oil Projects (SCOP). The 140 million USD contract was the first ever awarded to an Iraqi company

for an oil field development project in Iraq.

• KAR sub-contracted DPS Engineering of Bristol, UK, to provide engineering expertise to bring the field to 100,000

barrels a day of production. 4

Kar Group_cont

• By early 2007, all equipment had arrived at Khurmala and was ready for installation and use, but no decision was

taken to begin construction.

• In late-November 2008, KAR Oil & Gas began fast-track construction of Phase One of the multi-phase project to

bring the field to initial production by July 2009.

• KAR mobilized more than 1,000 team members, over 95 percent of whom were Iraqi, to build world standard

facilities using the latest technologies.

• KAR invested 150 million USD and achieved the Phase One goal of installing the equipment to produce 50,000

barrels of oil per day from the Khurmala Dome.

• The Khurmala Dome is divided into three sections:

• North, Middle and South. In the North and Middle,

• KAR rehabilitated 40 previously drilled and capped wells to prepare them for production.

• 63 kilometers of flow lines were installed to connect the well heads to the manifold collectors that KAR

installed at the North and Middle Stations.

• Test separators were installed at the North and Middle Stations allowing for precise well management and

isolation for superior operations. 5

Kar Group_cont

• Two 20 inch trunk lines, for a total of 14 kilometers, were built - one each from the North and Middle Stations to

the Central Process Facility.

• The Central Process Facility, approximately 200,000 square meters in size, was constructed with inlet collectors,

production separators for separating the oil and associated gases, high and low pressure flares for gas flaring,

pumps with capacity to push up to 225,000 barrels of oil per day,

• full health, safety and fire fighting systems and all infrastructure to rapidly scale the production facilities to

150,000 barrels a day of production.

• A 40 kilometer, 20 inch pipeline was installed and buried to carry oil from the Central Process Station to the Erbil

Refinery.

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Kerkük_HC summarry by Domes

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Kerkük Structure

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