Block S-1 Joint Venture Group applies for oil development license in Yemen
The Block S-1 Joint Venture Group has submitted a Notice of Commercial Discovery, along with a Request for Conversion to a Development Area and a Development Plan to the Yemen Ministry of Oil and Minerals.
The Block S-1 Joint Venture Group is comprised of Canada’s TransGlobe Energy through its wholly owned subsidiary TG Holdings Yemen and Vintage Petroleum Yemen as operator. The Development Plan provides the framework for an integrated multi-field development and for continued exploration within the substantial 285,000 acre development area.
The initial field development is focused on the An Nagyah light oil pool, which was discovered and appraised during the 2002/2003 drilling program. The plan provides for early production commencing in the first quarter of 2004 by trucking up to 2,500 barrel of oil per day (bpd) from existing wells.
Concurrently, construction of a central production facility at An Nagyah and a 28-kilometer eight-inch pipeline to the Jannah Hunt Halewah export pipeline is planned during 2004, with an anticipated completion by early 2005.
The pipeline capacity would be in excess of 30,000 bpd to allow future discoveries to be placed on stream quickly. The central production facility will be designed with an initial capacity of 10,000 bpd.
It is expected that the An Nagyah field development will consist of 13 wells to delineate and produce the field. Development and appraisal drilling is expected to commence on the An Nagyah field in the first half of 2004. The total number of wells will be adjusted as additional reservoir information is obtained from new drilling.
In addition to the An Nagyah field development, the Block S-1 Joint Venture Group plans to drill an appraisal well on the Harmel medium gravity oil discovery and to evaluate the An Naeem gas condensate discovery for a potential condensate gas cycling project.
The Harmel appraisal well is expected to be drilled in 2004. It is anticipated that the Harmel pilot production project will commence after the An Nagyah field has been developed.
The Block S-1 Joint Venture Group anticipates the Ministry of Oil and Minerals to approve the Request for Conversion to a Development Area and the Development Plan within the next few days. — (menareport.com)
© 2003 Mena Report (www.menareport.com)